ZF Finance GmbH Adjusts Financial Forecast for 2024

ZF Finance GmbH has revised its financial forecast for 2024 due to a weak economy and significant market decline. The company noted a sharp drop in customer call-offs and reassessed risks in its powertrain technologies business, leading to lower earnings expectations. Despite visible effects from cost-saving measures, the market and sales declines are higher than previously assumed.

ZF now expects Group sales between EUR 40 and 42 billion, down from the previous forecast of EUR 42.5 to 43.5 billion. The adjusted EBIT margin is anticipated to be between 3 and 4 percent, compared to the earlier estimate of 4.9 to 5.4 percent. Additionally, the adjusted free cash flow is expected to exceed EUR 100 million, significantly lower than the previous estimate of over EUR 800 million.