A positive first half for Zf, but not without worries
In the first half of this 2019, Zf recorded sales of around 18.4 billion euros. The adjusted operating result (Ebit) is around 650 million euros. Based on these data and taking into account the difficult economic context, the company has decided to review its outlook for the rest of the current year. Zf now estimates a turnover of between 36 and 37 billion euros and an adjusted Ebit margin of between 4 and 5 per cent by the end of 2019.
Wolf-Henning Scheider, CEO of Zf, said: «The important orders we have recently received for the automatic transmission for cars with hybrid support and for the electric engine for a high-volume luxury vehicle, whose deliveries have already started, show that our strategy and our open technology approach are the right ones. Customers trust our products and our technologies over the long term. However, we cannot step away from the complex economic situation we are currently facing globally and we are considerably below our targets following the downturn in the automotive market».
A slowing market
While the market for heavy commercial vehicles and the industrial vehicle market remained stable at first, in the first half of 2019 Zf’s sales growth slowed for vehicle in virtually all the world’s major markets, particularly in China. In addition to economic regression, political and economic factors such as uncertainty about the upcoming Brexit as well as tariff and trade problems are also having a negative impact. Then counting also the various currency effects and those related to mergers and acquisitions, Zf has achieved a turnover lower than about 1.7 per cent for the moment, reaching approximately 18.4 billion euros.
Konstantin Sauer, CFO of Zf, added: «We are not satisfied with these figures and we are partially compensating them by adapting our resources. Furthermore, we are implementing additional measures to improve our results. Despite this, Zf will continue to invest in future-oriented technologies, such as electromobility and autonomous driving». However, the company is already planning to postpone or reduce investments in areas where the economic downturn is particularly evident.