By David Sachs
ZF Friedrichshafen AG on Thursday reported significantly lower profit for 2022 and projected moderate sales growth this year, as well as a reorganization.
The German auto supplier's net profit attributable to shareholders fell to 227 million euros ($240 million) from EUR660 million a year prior, in part due to one-off expenses and costs, including the acquisition and deconsolidation of Russian subsidaries.
Sales rose to EUR43.8 billion from EUR38.3 billion with higher demand for car electrification parts. Earnings before interest and taxes fell to EUR1.11 billion from EUR1.42 billion.
"Even though we made further progress with our strategy in 2022, we cannot be satisfied with this financial result," said Chief Executive Holger Klein, who took over Jan. 1.
Despite remaining headwinds including lower vehicle production, pandemic effects, and Russia's invasion of Ukraine, the company said it expects sales to rise to more than EUR45 billion in 2023, with an adjusted EBIT margin of 4.7%-5.2%.
To make ZF leaner and position the company for investments in more modern technology, it plans to turn three divisions--passive safety systems, conventional car axles, and autonomous shuttles--into stand-alone businesses. Mr. Klein said the company is looking for outside investors with which to partner. ZF also plans to consolidate its chassis and active safety systems operations as one division.
"Our most important task is to focus ourselves, and to push change and gain speed. We have launched a comprehensive performance program to accelerate processes, simplify decision making and maintain cost discipline," Mr. Klein said.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
March 16, 2023 08:26 ET (12:26 GMT)
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