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ZF Posts Record Sales as Operating Profits Rise
ZF Friedrichshafen AG reports its pretax earnings in 2017 rose 5% to €2.2 billion ($2.7 billion), as sales climbed 4% to a record €36.4 billion ($45 billion).
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ZF Friedrichshafen AG reports its pretax earnings in 2017 rose 5% to €2.2 billion ($2.7 billion), as sales climbed 4% to a record €36.4 billion ($45 billion).
The German powertrain supplier says its revenue in Europe and North America grew by more than 3% last year. Growth was 8% in the Asia Pacific, but unfavorable exchange rates reduced that amount to about 2%. Sales in South America jumped 26% from a low base.
R&D spending last year grew 15% to €2.2 billion, according to the company. It anticipates an unspecified increase in 2018, mostly to fund work on electric drives, hybrid transmissions, vehicle safety systems and automated driving.
ZF says its gross debt has dropped by nearly 50% to €6.4 billion ($7.9 billion) since its acquired TRW Automotive in May 2015.
The company expects its gross sales this year will rise by only €100 million to €36.5 billion because of the expected sales of its Body Control Systems business. Revenue from continuing operations is likely to grow 5%.
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