ZF reports preliminary figures for fiscal 2020 - Strong performance in the second half of the year
- Adjusted EBIT margin at 3.2 percent
- Earnings after taxes still negative
Friedrichshafen, Germany. Based on preliminary and non-audited figures, ZF expects consolidated sales of €32.6 billion for the fiscal year 2020. This represents a decline in sales of around 11 percent compared to the previous year. The adjusted EBIT margin* for 2020 is 3.2 percent.
The first half of 2020 saw a 27 percent decline in sales and an adjusted EBIT margin of minus 1.3 percent. ZF initiated comprehensive cost reduction and restructuring measures immediately following the outbreak of the corona pandemic. Supported by a significant market recovery, this led to a substantial improvement in sales and earnings in the second half of 2020.
ZF furthermore benefited from its strong presence in the Chinese market. Since early summer 2020, China’s economy has experienced a continued strong upturn. Overall, the company achieved a significant positive adjusted operating profit in the 2020 fiscal year. Earnings after taxes in 2020 will still be clearly negative, in particular due to high upfront expenditures for future tasks.
At around €1 billion, adjusted free cash flow** in 2020 was higher than in 2019 (€803 million).
Detailed figures for 2020 and an update on the current fiscal year will be announced when the company releases its consolidated financial statements on March 18, 2021.
* adjusted EBIT: EBIT plus/minus net effects from purchase price allocation (including amortization and depreciation), net effects from M&A activities and other special items that are considered exceptional or non-recurring in nature
** adjusted free cash flow: free cash flow plus/minus adjustments for M&A activities and investments in/proceeds from securities
- Strong performance in the second half of the year
- Adjusted EBIT margin at 3.2 percent
- Earnings after taxes still negative
Friedrichshafen, Germany. Based on preliminary and non-audited figures, ZF expects consolidated sales of €32.6 billion for the fiscal year 2020. This represents a decline in sales of around 11 percent compared to the previous year. The adjusted EBIT margin* for 2020 is 3.2 percent.
The first half of 2020 saw a 27 percent decline in sales and an adjusted EBIT margin of minus 1.3 percent. ZF initiated comprehensive cost reduction and restructuring measures immediately following the outbreak of the corona pandemic. Supported by a significant market recovery, this led to a substantial improvement in sales and earnings in the second half of 2020.
ZF furthermore benefited from its strong presence in the Chinese market. Since early summer 2020, China’s economy has experienced a continued strong upturn. Overall, the company achieved a significant positive adjusted operating profit in the 2020 fiscal year. Earnings after taxes in 2020 will still be clearly negative, in particular due to high upfront expenditures for future tasks.
At around €1 billion, adjusted free cash flow** in 2020 was higher than in 2019 (€803 million).
Detailed figures for 2020 and an update on the current fiscal year will be announced when the company releases its consolidated financial statements on March 18, 2021.
* adjusted EBIT: EBIT plus/minus net effects from purchase price allocation (including amortization and depreciation), net effects from M&A activities and other special items that are considered exceptional or non-recurring in nature
** adjusted free cash flow: free cash flow plus/minus adjustments for M&A activities and investments in/proceeds from securities
