ZF posts first half sales up 10%

In the first six months of this year, ZF achieved sales of €21.2 billion (2021: €19.3 billion), an increase of 10 percent compared to the same period last year (5 percent was due to currency effects ). Adjusted EBIT was €851 million (2021: €1.0 billion), corresponding to an adjusted EBIT margin of 4.0 percent (2021: 5.2 percent).

“The first half of the year was characterized by many uncertainties and outside influences. We, as the ZF team, have mastered them well, especially based on the experience gained in the past two years of the crisis,” said Wolf-Henning Scheider, Chief Executive Officer of ZF Friedrichshafen AG, at the presentation of the half-year figures for Wednesday. “The war in Ukraine, the pandemic-related lockdowns in China, the limited availability of semiconductors and significant inflation have impacted our operations. Our focus is on striking the right balance between our customers’ expectations and our profit target, while continuing to invest in future technologies.”

“In a weak and volatile market environment, we have shown stability and perseverance in our performance,” said ZF CFO Dr. Constantine Sauer. “The challenges will not abate in the second half of the year. But we are confident that we will stay on track through cost awareness, continued consistent mitigation of inflation effects and active management of our inventories. We are closely monitoring our annual financial targets.”

In light of developments to date and the outlook for the coming months, ZF said it is sticking to its full-year outlook, which will remain unchanged. The company expects moderate revenue growth in 2022, with volume exceeding €40 billion for the first time. ZF forecasts an adjusted EBIT margin between 4.5 and 5.5 percent and an adjusted free cash flow between €1.0 billion and €1.5 billion.

Preparations for gas shortage

The company stressed that the outlook is still tentative as ZF expects continued negative impacts from ongoing problems (inflation, war in Ukraine, limited availability of semiconductors, new outbreaks of the Covid-19 pandemic). Potential cessations of gas supplies in Germany and Europe could also affect operations in the second half of this year. The company said it is preparing for this scenario. “We are strengthening the measures already taken to further reduce our energy consumption, as reflected in our sustainability strategy,” said CEO Scheider.

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