ZF has posted first half operating profit up to EUR1.1bn (US$1.22bn) while sales rose to EUR17.8bn.

The German supplier says the figures can be compared with the prior-year period only to a limited extent as the first half of 2015 was essentially characterised by extraordinary items: the acquisition of the TRW and the sale of the 50% share in ZF Lenksysteme.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

“Our adjusted EBIT margin rose significantly in the first six months thanks to our improved operating performance and realised synergies within the framework of the ZF TRW integration,” said ZF CFO Konstantin Sauer.

ZF’s sales amounted to EUR17.8bn in the first half of the year. This corresponds to an organic growth of 5% when comparing the current figures with the combined pro forma sales of ZF and ZF TRW for the period from January 1 to June 30, 2015.

Growth was slightly hampered by exchange rate fluctuations. Adjusted by currency effects and other acquisitions and sales, it amounted to 2%.”

See Also:

In the first half of 2016, ZF’s automotive sales especially grew in North America and Europe. Adjusted for currency and M&A effects, the company achieved slight organic sales growth in the Asia-Pacific region.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In the Commercial Vehicle Technology Division, solid growth in Europe was offset by weak markets in Russia and South America. The overall significant rise in sales in the Industrial Technology Division is attributable to the acquisition of the large industrial drives and gearboxes business of Bosch Rexroth and to high growth rates in the wind power business.

In spite of fluctuating exchange rates, ZF expects the business development for the overall year 2016 to be stable and forecasts sales of around EUR35bn an adjusted EBIT margin of around 6% and an adjusted EBITDA margin of more than 10%.

“We achieved a significantly improved margin in the first half of the year and we want to maintain this momentum during the overall fiscal year despite challenging conditions,” added ZF CEO, Stefan Sommer.

“At the same time, we must increase the competitiveness, especially of the German locations, by increasing flexibility and adjusting cost structures.”