ZF closed the 2016 fiscal year with Group’s sales growth by 20,6% to 35,2 billion euro. The significant result is also due to the mid-May 2015 TRW acquisition, with sales from the resulting new Active & passive safety technology division included for the first time in the ZF Group sales in 2016. The adjusted EBIT margin climbed one percentage point to 6,4%, and adjusted free cash flow totaled 2 billion euro.
The ZF’s automotive sales increased moderately, while sales posted by the Industrial technology division rose 16,7%, due in particular to the acquisition of the wind turbine gearbox and industrial drives segments from Bosch-Rexroth, as well as significantly higher sales in Wind power business unit. Thanks to the strong financial position, ZF reduced its debt from the TRW acquisition by 1,6 billion euro, while increasing spending on research and development to 2 billion, primarily from intensified development activities in Active & passive safety technology and e-mobility divisions, aiming to play an important role in future businesses of e-mobility and autonomous driving. Looking at the future, ZF is targeting 2017 sales of approximately 36 billion euro, and an adjusted EBIT margin of more than 6%.