ZF, a global leader in driveline and chassis technologies, has revised its financial outlook for 2024, citing accelerated market declines and reduced customer demand. A reassessment of risks in its powertrain technologies business has also contributed to the lowered earnings expectations.
Despite visible improvements from cost-saving initiatives, ZF announced that the market’s challenges have proven more severe than anticipated. As a result, the company has adjusted its financial forecast for the year. Accordingly, the - Group sales are now expected to range between EUR 40 and 42 billion, down from the previous estimate of EUR 42.5 to 43.5 billion.
The adjusted EBIT margin is projected to be between 3% and 4%, a decline from the earlier forecast of 4.9% to 5.4%. Adjusted free cash flow is now anticipated to exceed EUR 100 million, significantly lower than the prior estimate of over EUR 800 million.
ZF continues to navigate the challenges of a rapidly changing market, while focusing on performance improvements and cost-efficiency measures.
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