ZF North America Adjusts 2024 Financial Forecast Amid Market Downturn

ZF North America Capital Inc. has revised its financial forecast for 2024, citing a weak economy and significant market decline. The company now anticipates Group sales to be between EUR 40 and 42 billion, down from the previously projected EUR 42.5 to 43.5 billion.

The adjusted EBIT margin is expected to drop to between 3 and 4 percent, compared to the earlier forecast of 4.9 to 5.4 percent. Additionally, the adjusted free cash flow is now estimated to exceed EUR 100 million, a significant decrease from the previously expected figure of over EUR 800 million.

This forecast adjustment reflects accelerated market decline and a sharp drop in customer orders. Despite visible effects from cost-saving measures, the expected burden from market and sales declines is higher than anticipated. A reassessment of risks in the powertrain technologies business has also contributed to lower earnings expectations.