omniture

Dynamic Growth for ZF

2007-04-26 10:06 666

- Sales in 2006 Increase by 8 Percent to EUR11.7 Billion

- Stronger Competitive Position in All Market Segments

- Innovative Products Increase Benefit to Customers and Improve

Environmental Compatibility

ZF Friedrichshafen AG continued to grow in 2006. Sales increased by 8 percent to EUR11.659 billion. The average number of ZF employees increased by 2 percent this year to total 55,050. Net profit after taxes totaled EUR296 million.

FRIEDRICHSHAFEN, Germany, and STUTTGART, Germany, April 27 /Xinhua-PRNewswire/ -- Speaking at the annual press conference in Stuttgart, ZF Friedrichshafen AG CEO Hans-Georg Harter reported that the ZF Group continued to strengthen its international market position in 2006. ZF divisions and business units gained substantially from strong sales in the commercial vehicle and construction machinery segments. The success of European vehicle manufacturers on export markets had a positive impact on ZF performance. According to Mr. Harter, "This enabled ZF to take an important step to toward securing the future."

Technology Leadership Through Innovations

Included among the most successful products for passenger cars are the ZF 6-speed automatic transmissions. The second generation of these products was launched on the market in 2006. This advanced version of the first-generation 6-speed automatics produced since 2001 features significantly shorter shift response times and a further improvement in fuel economy. ZF produced more than one million automatic transmissions for passenger cars in last year. Other products on the company's list of top sellers include electronic steering systems, of which ZF produced 1.6million units in 2006. Last year's market response was also very positive for ZF passenger car axle transmissions (800,000 units), commercial vehicle transmissions (400,000 units), complete axle systems (1.6 million units) and electronic damping systems (800,000 units).

ZF products play a significant role in reducing vehicle/fleet fuel consumption and emissions. The second-generation 6-speed automatic transmissions for passenger cars improves fuel economy by 3% with gasoline engines and up to 6% with diesel power. The hybrid systems currently being developed by ZF in cooperation with Continental Automotive Systems reduce fuel consumption even further. In the chassis area, electronic steering systems and lightweight components make it possible to achieve additional reductions in fuel consumption.

Regional Developments

ZF development in the different regions around the world was varied in 2006. Sales in Western Europe increased by 4 percent to EUR7.841 billion. In Eastern Europe, the company reported growth of around 70 percent with sales totaling EUR547 million. The share of ZF Group sales in Western and Eastern Europe was quoted at 72 percent. The strongest growth was reported in the Asia-Pacific region with a 48-percent increase in sales to EUR1.115 billion. The is equivalent to a nearly 10-percent share of ZF Group sales. The NAFTA region accounted for 14 percent of ZF sales, a 9-percent decline compared to the previous year's figures.

Along with optimizing processes and structures, the future focus for ZF in North America is on increasing engineering and sales activities. This applies to existing ZF customers as well as to the transplants of Japanese and South Korean manufacturers. In South America, where ZF generated 3 percent of its totals sales, EUR369 million, the company reported a positive growth rate of 4 percent.

Germany, where the number of ZF employees remains at a consistently high level, is a top priority for ZF. In 2006, the average ZF Group workforce numbered 55,050 employees. Around 60 percent of these people work in Germany. The total number of ZF employees increased by around 2 percent in 2006 compared to the previous year's figure.

Potential in the Emerging Markets

A further increase in global activities is necessary for ZF to maintain and expand its long-term position on world markets. Along these lines, the product strategy will focus more intensively on a design-to-market approach to meet the different customer expectations in the various regions. The rapidly growing demand for vehicles in the emerging markets offer interesting potential in this respect. ZF is striving for a balanced regional distribution of sales between Europe, North America and Asia. Europe will remain as the largest long-term market region. In terms of customers and markets, higher growth rates are expected in North America and especially Asia. According to Mr. Harter, the rate of growth in ZF sales for 2007 will be somewhat lower compared to 2006.

ZF is one of the world's leading automotive industry suppliers specializing in driveline and chassis systems. With around 55,000 employees, the company operates 120 plants in 25 countries. The ZF Group generated sales of EUR11.7 billion in 2006. ZF ranks among the 15 largest automotive suppliers worldwide.

Photos and additional press releases are available on the Internet: http://www.zf.com/presscenter

Source: ZF Friedrichshafen AG
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