| 23-04-2008
ZF Group sales increased by 8% in 2007 to €12.65 billion. The workforce grew by an average 4% last year to 57,372 employees. Operating profit reaches €917 million.
Friedrichshafen/Stuttgart. Speaking at the annual press conference in Stuttgart, ZF Friedrichshafen AG CEO Hans-Georg Härter reported: “Profitable growth for the ZF Group continued in 2007.” This positive earnings position will be used to finance investments, expand the company’s international scope in Russia, Asia and other countries, and move forward with technical innovations.
In Western Europe, the most important ZF market region, the company increased sales in 2007 by 8% over the previous year to €8.469 billion. In Eastern Europe, where ZF reported substantial double-digit growth in the past few years, sales increased once again in 2007 by 10% to €601 million. The biggest increase in ZF sales was recorded in the Asia-Pacific where revenues rose 46% over the previous year to total €1.627 billion. In North America, a slump in sales for traditional U.S. customers resulted in a 19% decline in revenues to €1.279 billion. Development in 2007 was dynamic in South America where ZF sales reached €478 million, 30% more than in 2006.
Full order books throughout most of 2007 had a positive effect on the employment situation at ZF. The company’s international workforce reached an annual average of 57,372 employees, 4% more than in the previous year. A total of 2,322 new jobs were created, including 1,160 positions in Germany. More than 100 engineers were hired in 2007 for the development of future-oriented hybrid technology at ZF sites in Friedrichshafen and Schweinfurt. Another 250 engineers will be added in the current year.
Improved profits and liquidity
According to ZF CFO Willi Berchtold, “The 2007 business year was characterized by positive developments in the company’s profit and liquidity.” Operating profit increased by 35% over the previous year to €518 million. The net financial position improved by 48% to €1.288 billion. ZF invested €584 million in property, plant and equipment in 2007. In the current business year, the company is planning to invest more than €900 million to prepare series production launches for new products and to expand the ZF research and development network.
Outlook 2008
During the course of 2007, ZF introduced a number of new developments that will be launched into series production in 2008 and 2009. These include an 8-speed automatic transmission for cars that represents another major step towards improving fuel economy and lowering emissions. Series production of hybrid modules is scheduled to start soon, making ZF the first independent manufacturer to supply mass-produced hybrid technology. Production of chassis components at a new plant in Levice, Slovakia is also slated to start in spring 2008.
The differing sales performance trends in regional markets are expected to continue in 2008 with sluggish economic development in North America and Europe. According to Mr. Härter, the increase in sales for 2008 will be below the 2007 growth rate.
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