The first half of 2016, ZF Friedrichshafen AG (ZF Friedrichshafen AG) has maintained a good momentum of development. In the first half of the year, sales increased to 17.8 billion euros, adjusted operating profit (EBIT) increased to 1.1 billion euros, and net debt decreased to 7.2 billion euros. Since sales in 2015 were greatly affected by M&A transactions, the acquisition of U.S. TRW and the sale of 50% of the non-recurring income of ZF steering system, the business data for the first half of 2016 can only be correlated to 2015 to some extent. Year-on-year comparison.

ZF

Dr. Konstantin Sauer, Chief Financial Officer of ZF (ZF), said: "In the first half of the year, we consolidated our ZF TRW organizational structure while continuing to improve our operating performance. And a synergy effect has been achieved, which has led to a significant increase in ZF's adjusted EBIT margin."

In the first half of this year, ZF sales reached 17.8 billion euros. Compared with the combined sales of ZF and ZF TRW in the first half of last year, the organic growth rate reached 5%. In addition, exchange rate fluctuations have a negative impact on business growth. Due to currency effects and other M&A transactions, total sales increased by only 2%.

Wind power business has a strong development momentum, with growth in automotive business in North America and Europe

In the first half of 2016, sales of ZF's automotive business grew in both North America and Europe. In the Asia-Pacific region, sales were slightly organically affected by exchange rate and M&A transactions. The steady growth of the Commercial Vehicles Technology Division in the European market offsets the weak market in Russia and South America. The performance of the Industrial Technology Division has increased significantly, thanks in part to the acquisition of Bosch Rexroth's large industrial drives and gearbox business, and on the other hand to the high growth rate of the wind power business. In contrast, the performance of the construction machinery industry has declined. Among them, about 7% of the entire group's sales come from the Industrial Technology Division.

Prospects for the development of electric vehicle business

For the first time, sales of electric technology divisions established in January 2016 amounted to 407 million euros. This division integrates electric-technology-related businesses in all automotive sectors of ZF. According to the latest forecast, by 2025, the market growth of hybrid or pure electric vehicles will reach 7%-10%. Dr. Stefan Sommer, chief executive officer of ZF, said: “We will benefit from this growth trend and shape the future market. ZF in integrated chassis systems, transmission systems and electronics The unique systematization capability of the system is an important prerequisite for achieving this goal."

Significant increase in operating profit

Due to the impact of special M&A projects (the acquisition prices of TRW Automotive Group), ZF's operating profit in the first half of 2016, ie EBIT, reached 1.1 billion euros. Compared with the same period in 2015, the annual operating profit was significantly affected by mergers and acquisitions (the sale of ZF steering systems and the acquisition of TRW Automotive Group). At the same time, ZF’s EBIT margin increased by 1.8. Base point, increased to 6.3%. The main reason for its growth was the improvement of ZF's overall product portfolio operating performance and its synergy with ZF TRW. After adjustment, EBITDA also increased to 1.9 billion euros, which represents an increase of 10.7% in EBITDA.

Group debt further reduced

In the first half of 2016, the free cash flow generated from the M&A transaction amounted to 401 million euros, an increase of 229 million euros from the previous year. This, together with the existing liquid assets, reduced the debt generated by the acquisition of TRW Automotive by nearly EUR 500 million. In the first half of the year, net financial liabilities fell by 175 million euros to 7.2 billion euros. The proceeds from the sale of the ZF Fasteners and Components Business Unit totaled approximately US$450 million and the transaction will be completed in the second half of the year (July 1, 2016). Therefore, the data currently published does not include the sale of the business. Unit income.

Standard & Poor's Credit Ratings Rank Increased and Credit Lines Increase Further

In April of this year, Standard & Poor's credit rating raised ZF's credit rating by one level to BB+. In June, Moody's also upgraded ZF's credit rating to Ba1 and gave a stable development forecast. Dr. Sauer, Chief Financial Officer, said: "The increase in credit rating confirms that we are on the right track. Our goal is to continue to obtain investment-grade credit ratings." With improved credit rating, continued stable debt repayment ability and favorable The market environment enabled ZF to raise funds for its previous joint loans with more favourable conditions and flexible expiry terms and received a high-credit contractual commitment to achieve a total of €3.5 billion in credit The quota, which further increases ZF's liquidity reserves.

Annual forecast for 2016

Despite the impact of exchange rate fluctuations in 2016, ZF expects the overall business development in 2016 to be stable, with sales expected to reach approximately 35 billion euros, and the adjusted EBIT margin will be approximately 6%. The adjusted profit before tax, depreciation and amortization will exceed 10%.

"ZF's profitability in the first half of the year has been significantly improved. Despite all the challenges, we hope to maintain this momentum throughout the fiscal year," said CEO Dr. Sommer. "At the same time, through To increase flexibility and adjust the cost structure, we must further improve our competitiveness, especially in the German region."

Characteristic of zinc die casting products:

1. High specific density, more strength than plastic injection molding.

2. Good casting performance, Producing complex shape and Thin-walled precision die casting parts,
the surface of Zinc Die Casting part is smooth.

3. Easy do the surface treatment: Plating, powder coating, Painting.

4. Do not attract iron when Melt and die casting, do not corrosion Zinc Die Casting Mould and Non-stick mold.

5. Have good room temperature mechanical properties and wear resistance.

6. Low melting point, Melts at 385℃, more easily forming than aluminum alloy die-casting molding.

M Domestic commonly used die-casting zinc alloy material performance:

The traditional die-casting zinc alloy: No.2, No.3, No.5, No.7. ZA8 Currently the most widely used is zinc alloy No.3.

The application of commonly used zinc alloy:

No.2: It is used to those mechanical fittings that have special need in mechanical capability, and need high rigidity and normal dimension and precision.

No.3: Good liquidity and mechanical properties, and the best combination of mechanical properties, casting properties and economical. It applied to the die casting part which the mechanical strength requirement is not high. Such as toys, light parts, decorations and part of the electric parts.

No.5: Good fluidity and good mechanical properties, high wear resistance. It applied to the zinc die casting part which has requirements of mechanical strength. Such as auto parts, mechanical and electrical parts, machinery parts, electrical components.

Domestic main zamak chemical composition %

Die-casting zinc alloy mechanical properties

The precision of the Zinc Alloy Die Casting: ±0.05mm;

Smoothness of surface of rough part: Ra1.6~Ra3.2;

Shrinkage rate of zinc die casting products: 0.3%;

Material wastage rate: 5%;

General zinc die-casting machining allowance: 0.3mm~0.5mm;

Surface preparation methods: Sand blasted, Shot blasting, Powder coating, Painting, Plating, Electrophoresis, Polishing

The zinc alloy die casting production and QC control

Zinc Die Casting Parts

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