FRANKFURT, March 20 (Xinhua) -- German auto supplier ZF on Thursday announced a sharp decline in profits in 2024, and a cautious outlook for this year.
Publishing its financial results for last year, ZF also said the outlook for 2025 will remain challenging due to weak economic growth, transformation pressure and geopolitical uncertainty.
Total sales fell by around 11 percent to 41.4 billion euros (44.9 billion U.S. dollars) in the 2024 fiscal year, while adjusted earnings before interest and taxes (EBIT) slumped by 36.46 percent to 1,504 million euros, ZF said.
The nominal sales decline of around 11 percent was strongly influenced by the deconsolidation of the axle assembly product line, said the company.
"The year 2024 has made it clear just how much pressure our industry and our company is under," said ZF CEO Holger Klein at the presentation of the annual report in Friedrichshafen.
"Despite the very challenging market environment, we continued our transformation in a targeted manner in the fiscal year 2024, achieving key milestones that pave the way for a successful future," said the company in a statement.
In July 2024, ZF unveiled a realignment plan, under which it will increase investment in its Commercial Vehicle Technology, Chassis Solutions, Industrial Technology and Aftermarket divisions.
Meanwhile, the number of employees in Germany will be reduced to 14,000 by 2028, which means around 11,000 jobs will be slashed, the company said in July 2024.
