Source: ZF announcement
Friedrichshafen, Germany — In the first half of 2022, ZF held its own in a globally challenging and volatile market environment.
In the first six months of this year, the company achieved sales of €21.2 billion (2021: €19.3 billion), an increase of 10 percent above the prior-year period. Adjusted EBIT totaled €851 million (2021: €1.0 billion), equivalent to an adjusted EBIT margin of 4.0 percent (2021: 5.2 percent).
“The first half of the year was characterized by many uncertainties and external influences. We, as the ZF team, have mastered them well – notably based on the experience gained in the past two years of the crisis,” said Wolf-Henning Scheider, Chief Executive Officer of ZF Friedrichshafen AG, when presenting the half-year figures on Wednesday. “The war in Ukraine, the pandemic-related lockdowns in China, the limited availability of semiconductors and significant inflation have affected our business.
“Our focus is on striking the right balance between our customers’ expectations and our earnings target while ensuring ongoing investments in future technologies.”
Stable financial key figures
From January through June 2022, the technology company generated sales of €21.2 billion (2021: €19.3 billion), representing an increase of around 10 percent (5 percent adjusted for currency effects) compared to the prior-year period. Worldwide vehicle production decreased during this period, with output down two percent in the passenger car segment and down 28 percent in the commercial vehicle segment from the prior-year figure.
The company reported an adjusted EBIT of €851 million (2021: €1.0 billion). This corresponds to an adjusted EBIT margin of 4.0 percent (2021: 5.2 percent). Adjusted free cash flow totaled minus €630 million (2021: minus €186 million), which is mainly driven by safety stock that is influenced by currency effects and the increase in material prices.
“In a weak and volatile market environment, we have demonstrated stability and perseverance in our performance,” said ZF CFO Dr. Konstantin Sauer. “The challenges will not diminish in the second half of the year. But we are confident that we will remain on track through cost awareness, continued consistent mitigation of inflationary effects, and active management of our inventories. We are keeping a close eye on our annual financial targets.”
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