New Delhi: The auto component maker ZF Friedrichshafen AG on Friday said it will be following the long-term goals of its “Next Generation Mobility” strategy to shape mobility needs of the future in 2021, the company said in a release.
The company has bagged new billion-euro orders for the hybrid-capable 8-speed automatic transmission and new business in the area of active safety technology with the continued increase in demand for electric bus drives, and R&D orders for automated driving functions.
The German car parts maker is preparing to ramp up the plants in Europe and the U.S. after customers resume production. In Asia, production has already been resumed.
Announcing the annual result for 2019, the component maker said it has achieved its targets for the full year which were revised in summer 2019. The ZF Group’s sales in 2019 stood at €36.5 billion when compared to the 2018 figure which stood at €36.9 billion. Organic sales declined by 1.9 percent.
“The general economic climate and special challenges connected to the overall transformation of our industry had a tangible impact on our business last year,” explained ZF CEO Wolf-Henning Scheider.
Adjusted EBIT amounted to €1.5 billion against €2.1 billion in 2018; the adjusted EBIT margin declined to 4.1 percent.
Investments in property, plant and equipment amounted to €1.9 billion. The company’s CFO Sauer noted, financing the planned acquisition of the commercial vehicle brake manufacturer Wabco was a success.
The company said its earnings were affected by higher research and development (R&D) expenditure and setting up new sites for future technologies – such as production facilities for electric drives in Germany, Serbia and China.
ZF increased its R&D expenditure to €2.7 billion from €2.5 billion in 2018. “When we overcome the current crisis, we want to continue to invest in future technologies in a focused manner,” said ZF CEO Scheider. “This will enable us to further expand our competencies as a leading systems supplier.”
Announcing the 2020 business outlook, Scheider emphasized, “The global economic situation has changed fundamentally since the spread of the coronavirus and the certification of the ZF annual financial statements. When the world comes to a social and economic standstill, we face an unprecedented situation.”
He further added, “Its effects are uncertain which is why we are currently not in the position to make a valid forecast for 2020. We will continue to do everything we can to protect our employees, stop the spread of the virus and ensure the stability of our company.”