Germany-based automotive components manufacturer ZF Friedrichshafen has reported a consolidated sales figure of €41.4bn for the fiscal year 2024, an 11% decrease from the previous year’s €46.6bn.
The company said the decline was primarily due to the deconsolidation of its axle assembly product line, which was transferred to the ZF Foxconn Chassis Modules joint venture in April 2024. This one-time effect accounted for €2.6bn of the reduction.
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Adjusted for mergers and acquisitions and currency fluctuations, organic sales declined by around 3%.
Restructuring provisions of approximately €600m contributed to a net loss after tax of €1.02bn, compared to €126m net profit reported a year ago.
Net debt increased to €10.47bn from €9.98bn in 2023, while the equity ratio stood at 19.2%.
Organic sales revenues, adjusted for mergers and acquisitions (M&A) effects and currency influences, fell by approximately 3%.
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By GlobalDataThe adjusted earnings before interest and taxes (EBIT) for ZF Group stood at €1,504m, down from €2,367m in 2023, with an adjusted EBIT margin of 3.6%.
Adjusted free cash flow was €305m, and a significant provision for restructuring costs resulted in a net loss of €1,020m.
Investment in research and development remained steady at €3.6bn, with the R&D rate increasing to 8.6% due to lower revenue.
In terms of financing operations for 2024, ZF repaid debts of €2.3bn and secured several financing transactions, including a €800m green bond issuance and a $1.5bn green bond transaction in the US.
Additionally, bonded loans totalling around €800m were placed on the market, and two financing packages totalling €525m were secured from the EIB and EBRD. ZF’s liquidity headroom stands at €8.1bn.
Looking ahead to 2025, ZF Group anticipates only weak economic growth in the eurozone and Germany, with vehicle markets potentially staying below previous year levels.
The company expects to continue its restructuring efforts and projects group sales of over €40bn, an adjusted EBIT margin between three and four percent, and adjusted free cash flow exceeding €500m.
ZF Friedrichshafen CEO Holger Klein said: “The year 2024 has made it clear just how much pressure our industry and our company is under.
“The goal is to reduce ZF’s debt and develop the company into a more agile and profitable technology leader.
“This path, which we embarked upon two years ago, is costing us a great deal of energy.”
The firm said it will continue to implement its “Strengthening strengths – Unlocking potential” strategy for portfolio optimisation.
Klein added: “We continue to make targeted investments in core areas such as chassis, commercial vehicle and industrial technology as well as our aftermarket business, which are already among the top three in their respective segments.
“We are seeking partnerships in the areas of electric mobility, electronics and driver assistance systems to strengthen these areas for the future and to free up growth potential.” Recently, Thailand government official confirmed that ZF intends to increase local procurement to make the country a major global production
