On Tuesday, shares of Schaeffler surged over 9 per cent in early trade to their highest in over four months. The 5-month high jump can be attributed to the German automotive supplier reporting an upturn in profit. The company also said that the sectoral outlook had improved in the last three months.

Reportedly, Schaeffler also stepped up its transition to electric mobility by cutting another 1300 jobs. The company reported that it is trimming its workforce to address structural overcapacity. As per the company, the critical factor is to have in place the competitive cost structures needed to further accelerate the transformation process.

Schaeffler said it aims to realise €100 million a year in cost savings with the measures, causing a €130 million charge against earnings in the ongoing quarter. The company’s Q3 earnings showed sales at its e-mobility division increased 63 per cent on the year. On the other hand, sales in its conventional Engines and Transmissions division surged 20 per cent.

Founded in 1946, Schaeffler is a German manufacturer of rolling element bearings for automotive, aerospace and industrial uses.