25.04.2013

ZF sales increase to € 17.4 billion

Leading driveline and chassis company ZF Friedrichshafen AG has posted record sales of about €17.4 billion for 2012 - up 12 percent compared with 2011 (€15.5 billion). Operating profit was down 19 percent to € 687 million from € 850 million.

Dr. Stefan Sommer, ZF's chief executive officer said: "We will continue to grow in 2013 but less dynamically than in previous years. We will focus more on the quality of the result."

"We achieved particularly dynamic growth in North America just like in 2011 - which rose by more than 40 percent in 2012," said Sommer. “In contrast to 2011, there were regions hit by sales losses alongside other regions that achieved significant gains in 2012."

Asia-Pacific grew by 21 percent and Western Europe by six percent while figures in Eastern Europe dropped slightly by one percent and declined even more sharply (by 14 percent) in South America due to the market situation.

The product segments developed differently. Growth in the premium passenger car segment was offset by a stagnating, in some cases downward, trend in the volume passenger car segment. The commercial vehicle market recorded a general decline; the development of the industrial technology market varied widely within the different industries.

Dr. Konstantin Sauer, a corporate finance board member considered the operating profit of €687 million as "not satisfactory" with the return on sales fallen to four percent. "Besides considerable advance payments for higher production capacities, demand-driven under utilisation or over utilisation at some plants caused high extra costs," said Sauer. "The financial restructuring of the die-casting technology activities acquired in 2011 and the difficult market situation in the wind power business also had an effect on these results."

For the current year ZF expects a stabilisation particularly in the first half of the year, with only moderate growth rates. "In a rather weak economic environment, we will develop more strongly than the market and expect a plus in sales of approximately ten percent or around €1.5 billion," said Sommer. "Our overseas markets will be unable to fully offset the weak market development in Europe and in the wind energy sector."