ZF says it expects consolidated sales of EUR32.6bn (US$40bn) for the fiscal year 2020, based on preliminary and non-audited figures.
This represents a decline in sales of around 11% compared to the previous year, while adjusted EBIT margin for 2020 is 3.2%.
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The first half of 2020 saw a 27% decline in sales and an adjusted EBIT margin of minus 1.3%. ZF initiated cost reduction and restructuring measures immediately following the outbreak of the corona pandemic.
Supported by a significant market recovery, this led to a substantial improvement in sales and earnings in the second half of 2020.
ZF benefited from its strong presence in the Chinese market, which, since early summer 2020, has experienced a continued strong upturn.
“Overall, the company achieved a significant positive adjusted operating profit in the 2020 fiscal year,” said a ZF statement. “Earnings after taxes in 2020 will still be clearly negative, in particular due to high upfront expenditures for future tasks.”
At around EUR1bn, adjusted free cash flow in 2020 was higher than in 2019 (EUR803m).
Detailed figures for 2020 and an update on the current fiscal year will be announced when the company releases its consolidated financial statements on 18 March, 2021.
