ZF Friedrichshafen reported its financial results for the first half 2019. The company generated sales for about €18.4 billion and adjusted operating profit (EBIT) reached about €650 million.
Based on these results and a difficult economic environment, ZF adjusted its outlook for 2019 with total sales between 36 and 37 billion Euro, and an adjusted EBIT between 4 and 5% (previously sales were expected to reach between €37 and €38 billion and adjusted EBIT margin between 5 and 5.5%).
These results have been impacted in particular by the decrease in passenger car sales all around the world and especially in China. The markets of heavy-duty and industrial vehicles though have remained stable in the first half of 2019.
Future investment will focus on the strategic technology areas of autonomous driving and electromobility, while the company will postpone or reduce investments in established areas where the economic downturn is evident.
“We are not satisfied with this figure and are compensating by partially adjusting our capacities,” said ZF’s Chief Financial Officer Dr. Konstantin Sauer. “Nevertheless, ZF will continue to invest in future-oriented technologies such as electromobility and autonomous driving.”
Regarding the financing of the acquisition of commercial vehicle brakes manufacturer Wabco, Sauer said: “We have arranged solid long-term financing and potential investors have reacted positively to our plans.” To finance the acquisition, ZF is planning to issue a bonded loan and a Eurobond at the end of the summer.