quot; Currently, we are witnessing the collapse of the market overnight. quot; March 26, 2019 in the earnings conference ZF Friedrichshafen AG, Wolf Henning middot ZF CEO; Shi Aide (Wolf-Henning Scheider) made the comments. With the epidemic raging in the world, the unexpected black swan is causing great harm to the global manufacturing industry. Although most of the ZF plant in China has been basically restored to 90 percentage of production capacity, but its other factories located around the world was forced to shut down in the face of fate and about to shut down. On the day of the earnings PPT, ZF directly with the PPT one blank, to express 2020 earnings forecast of powerlessness – task because this is simply impossible.
When it comes to the predicted 2020 ZF shows a blank the PPT
unpredictable 2020
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according to the latest market research firm IHS Markit research shows that this year’s global car deliveries may drop 12% or more than last year, to 7,880 million units. This decade ago during the Great Depression than 8 percentage decline even more significant. This new estimate than the researchers expected in January decreased by 10 million units. According to statistics, as of March 26 Beijing time, a total of nearly more than twenty car prices and Components Group closed up more than 150 plants worldwide, its influence is self-evident.
In this regard, Wolf Henning ZF CEO middot; Shi Aide representation, quot; when the world into social and economic when stagnation, we are faced with unprecedented challenges. Its impact is uncertain, and therefore we are unable to respond effectively to predict 2020 performance. quot; blank ppt but does not mean anything, it means unlimited possibilities. Through the analysis of earnings it can be determined ZF is engaged in detailed preparations for the auto industry to meet future changes.
2019 earnings: After adjustment target market downturn continued high investment in R & D
Prior to reading the future, we look at the past. 2019, the automotive industry downturn. In the US market, light vehicle sales fell 1.6 percentage less than the total amount of 17.1 million; while in China the world’s largest auto market, car sales fell again, down 8.2 percentage.
While the 2019 market is full of different challenges, but ZF still achieve annual targets. Earnings data show that the removal of exchange rates and acquisitions factors, Group sales of 36.5 billion euros, slightly lower than 2018 sales of 36.9 billion euros (nominal sales growth of -1.9 percentage). Profit before interest and tax (EBIT) adjusted was 1.5 billion euros (2018: 2.1 billion euros), interest rates adjusted pre-tax profit margin (EBIT margin) was 4.1 percent (2018: 5.6 percent). As of the end of December 2019, ZF worldwide total of 147,797 employees, compared to 148,969 in 2018 were down slightly, but in the beginning, ZF originally planned by members, but for the rapid changes in the market, and had to personnel in a timely manner optimized.
ZF invested in fixed assets, plant and equipment totaling 1.9 billion euros (2018: 1.6 billion euros). Investment ratio reached 5.2 percentage substantial increase in 2018 compared to 4.3 percent rate. Despite the current challenging market environment, but ZF in the past year to improve its R & D investment again, high investment reached 2.7 billion euros (2018: 2.5 billion euros). Percentage share of R & D increased from 6.7 to 7.3 percentage. These investments are mainly focused on future-oriented technology.
For example, ZF in March last year, the successful acquisition of stake in Dutch 2getthere company 60 percent, the company is a autopilot electric passenger established supplier system, in order to consolidate the ZF Mobility As a Service (MaaS) and the position of the vehicle market in the autopilot. alsoAs of March over the same period, ZF agreed to pay $ 135.50 a share for WABCO, will join forces to become a leading global supplier of integrated systems technology for commercial vehicles, the combined total sales will reach about 40 billion euros. Last May, ZF acquired a 90 percent passenger recognition software company Simi Reality Motion Systems shares, to further improve the implementation of an integrated security system autopilot environment. Last June, ZF electric drive department expanded, and invest 30 million euros in a new office building Schweinfurt, Germany. In addition, investing about $ 150 million driven electrical production base in Hangzhou, China Construction, production capacity is expected to reach 40 million units. And recently, ZF and Microsoft reached a cooperation agreement to improve the development process and significantly enhance the ability of ZF in software. These investments and cooperation is certainly not for the quot; new four modernizations quot; (new energy, intelligence, network-linked, sharing) efforts, but there is a more appropriate word in the official language ZF outlined in the new four modernizations content –quot; next generation mobile travelers (Next Generation Mobility) quot ;.
future quot; mobile next-gen travel quot; is where the greatest confidence
As ZF CEO Wolf Henning middot; Shi Aide (Wolf-Henning Scheider) said : quot; in all these efforts, we will have a clear compass to point out that we in the right direction – through our ‘next-generation mobile travel’ strategy, we have formed a moving image of the future that will help us coordinate next move. quot;
ZF CEO Wolf Henning middot; Shi Aide (Wolf-Henning Scheider)
Under the guidance of this strategy, ZF recent years reliance on the traditional automotive business is being reduced year by year, depending on the degree in 2015, about 50 percentage, the percentage dropped to about 30 in 2019, while in 2021 this figure will drop to 27 percentage. ZF and hold up the banner of the future business will be four main sections – vehicle motion control, integrated security, Autopilot and electric movement. This four business constitutes a key aspect of the next generation of mobile travel strategy.
Wolf Henning middot; Shi Aide (Wolf-Henning Scheider) represents: quot; We no longer consider only a single product or vehicle, instead, mobility as a whole system in the 21st century people will use. quot; and such thinking and layout, are helping quot ZF out now facing the world; black swan quot; predicament, to consolidate its leading position in the automotive and technology sector. The PPT goes blank but give the ZF more likely to write next.