Sales and profits increase at ZF

Sales and profits increase at ZF

ZF reported an increase in profits and cash flow in 2016 as overall group sales rose by 20.6 per cent to €35.2billion. As a result, ZF has reduced its debt from the earlier TRW acquisition by €1.6billion while increasing spending on research and development to €2billion. In 2017, the company is targeting sales of approximately €36billion.

“ZF flexed its muscles in 2016 with outstanding business figures and innovative products,” says CEO Stefan Sommer. “This strength gives us a solid foundation to help shape the challenging transformation in the automotive industry through digitalisation, electromobility and autonomous driving.”

After the TRW acquisition in May 2015, sales from the resulting active & passive safety technology division for reporting year 2016 were included for the first time in the ZF Group sales for the whole year. Compared to the previous year, including the TRW sales for all of 2015, sales rose by 2.2 per cent.

ZF’s automotive sales increased slightly in 2016, especially for automatic passenger car transmissions and safety technology. Sales for the industrial technology division rose 16.7 per cent compared to 2015. 

Earnings before interest and taxes, adjusted for extraordinary items, climbed from just under €1.6billion to €2.2billion, an EBIT margin of 6.4 per cent, which represents an increase of around 20 per cent. 

“ZF is grasping the opportunity of fundamental change in the automotive industry to transform into a leading technology company in e-mobility and autonomous driving,” says Sommer. “The car of the future will still rely on mechanical components. Even an ‘iPhone on wheels’ needs brakes, a steering system, axles and the rest. Our strength is our combination of hardware and software. So we produce intelligent mechanical systems.”