ZF says TRW integration on track, sees stable profits despite China slowdown
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FRANKFURT (Reuters) - German provider ZF Friedrichshafen mentioned the consolidation of competition TRW Automotive is advancing nicely and it anticipated full-year revenues and earnings to stay constant, undeterred by a slowing Chinese market.
"China is getting a breather after years of rapid-growth," Chief Economic Officer Konstantin Sauer mentioned on a call with journalists today. "It's a short-term weakness that causes causes some insecurity."
In spite of the China marketplace rout, the manufacturer of automatic transmissions as well as other components anticipates revenue of between 2-9 billion euros and 30 billion euros ($32.7 billion to $33.8 billion), and an operating profit margin of approximately 5%.
Unlisted ZF nowadays launched its first half results for the very first time in its history.
Net profits before interest and taxation (EBIT) rose to 857 million euros, up from 454 million euros in the exact same period a year earlier, growing largely thanks to some one off increase generated in the selling of ZF Lenksysteme to Bosch.
Excluding special items, EBIT stayed at previous-year amount, ZF stated.
The acquisition of TRW in-May for $12.4 billion is "making great progress," Sauer stated, describing that it'll take between three and five years to incorporate the vehicle provider.
ZF has replaced a short-term bridge loan to finance the acquisition with 5.4 billion euros worth of bonds, Sauer stated.
No additional debt issuance or alternative capital markets actions are in the offing, Sauer stated, describing the organization 's present cash flows were adequate to aid pay down debt.
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