ZF Friedrichshafen reported sales off about 1% to US$16.3bn (EUR12.5bn) in 2008 after its car, truck and construction machinery parts markets declined significantly in the last quarter.
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After-tax profits nonetheless reached $567m (EUR434m), the second highest profit in company history.
ZF said 2008 was a fiscal year of two widely divergent phases. During the first three quarters, all divisions posted above-average sales, while the fourth quarter saw all regions and markets hit simultaneously by the economic downturn. Production volume reductions in the automotive segment resulted in a “difficult” final quarter.
Despite the downturn, sales in the Asia-Pacific region were up 13%, while South America saw an increase of 19%. Sales declined 5% in Europe and 2% in North America by 2%.
“Every crisis always also offers opportunities,” said Hans-Georg Haerter, CEO of ZF Friedrichshafen AG. “A solid financial structure and outstanding technological expertise with energy-saving products will help ZF safely navigate through the current crisis.”
The company said the world economic crisis would lead to a decline in business for ZF in 2009, “with a significant reduction in sales and earnings”.
“Nevertheless, ZF is a solidly financed company with outstanding technological expertise and a worldwide presence, and it can look to the future with confidence,” Haerter said. “This approach allows the company to secure its long-term independence.”
