Automotive industry Automotive supplier ZF with billions in losses
The German automotive supplier ZF was deep in the red in 2024. The loss amounted to just over one billion euros, as the company announced in Friedrichshafen on Lake Constance.
20.03.2025, 10:13
SDA
High provisions for conversion costs amounting to around 600 million euros were the main reason for the net loss. In 2023, the Group had still made a net profit of 126 million euros.
"The year 2024 has made it clear what enormous pressure our industry, and therefore our company, is under," said ZF CEO Holger Klein according to the press release. The challenges are being met with a plan of measures.
This includes savings and job cuts. The aim is to reduce ZF's debt and develop it into a more agile and profitable technology leader.
Profit slump and loss of sales
ZF is one of the world's largest automotive suppliers. The Group is 93.8 percent owned by the Zeppelin Foundation, which is managed by the mayor of Friedrichshafen. Like many others, the company is suffering from the weak economy and sluggish demand - especially for electric cars.
Last year, the Group generated revenue of 41.4 billion euros. This is a decline of around eleven percent or 5.2 billion euros compared to the previous year. The adjusted operating result (EBIT) amounted to around 1.5 billion euros, which is around 900 million euros less than in 2023.
ZF plans to cut up to 14,000 jobs in Germany in the coming years. As of December 31, 2024, ZF employed 161,631 people worldwide - around four percent fewer than in the previous year. In Germany, the number of employees has also decreased nominally by a good four percent to just over 52,000.
No improvement is expected for the current financial year. Assuming stable exchange rates, the Group expects turnover to exceed 40 billion euros in 2025.
