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ZF’s First-Half Operating Profit Sags
ZF Friedrichshafen AG says higher materials costs reduced its pretax profit by 12% to €1.1 billion ($1.2 billion) in the first half of 2018.
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ZF Friedrichshafen AG says higher materials costs reduced its pretax profit by 12% to €1.1 billion ($1.2 billion) in the first half of 2018.
The supplier of safety electronics and chassis systems reports that its revenue in January-June rose 8% to €18.7 billion ($21.9 billion). Results were tempered by a strengthening euro.
ZF predicts that softer passenger car markets in Asia Pacific and North America in the second half of the year will be offset by “significantly” stronger sales in the commercial vehicle sector.
Noting the uncertainties of new tariff restrictions this year, ZF nevertheless reiterates that it expects full-year consolidated sales of €36.5 billion ($42.7 billion) in July-December, a pretax margin of 6% and free cash flow of more than €1 billion.
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