
Bayern Munich 2025/26 Season Preview: Challenges Ahead for Kompany's New-Look Side
Section: Arts
The automotive supplier ZF Friedrichshafen continues to face significant financial challenges, reporting a loss of EUR195 million in the first half of the year. This marks a continuation of a troubling trend, as the company has struggled with profitability for several years. According to ZF's Chief Financial Officer, the ongoing instability in the market suggests that a full-year loss is likely, although the exact amount remains uncertain.
In the first six months of the year, ZF attributed its financial difficulties to several factors, including restructuring costs and high interest payments associated with its substantial debt, which stood at approximately EUR10.5 billion by the end of June. The CFO indicated that there is a possibility that the company's debt may rise slightly this year.
Despite the overall losses, ZF reported an adjusted earnings before interest and taxes (EBIT) increase from EUR780 million to EUR874 million. However, revenue dropped by 10.3% to EUR19.7 billion, primarily due to a one-time effect related to the axle assembly division, which has since been transferred to the joint venture ZF Foxconn.
The company's situation is particularly concerning as it had already reported significant losses in 2024, exceeding EUR1 billion. ZF is currently implementing multiple cost-saving measures, with plans to reduce its workforce by up to 14,000 positions in Germany by the end of 2028, which accounts for approximately one-fourth of its local workforce.
Holger Klein, the CEO of ZF, has been candid about the challenges ahead, indicating that employees should not expect a swift conclusion to the job cuts. He announced that the restructuring efforts would be intensified, though he did not provide specific details regarding additional layoffs.
The difficulties faced by ZF are not isolated; similar issues are impacting other major suppliers in the automotive sector, such as Bosch, Continental, and Schaeffler. These companies are grappling with a decline in orders from manufacturers and mounting pressure to invest. The slow adoption of electric mobility and uncertainties stemming from U.S. tariffs are contributing to reduced sales and escalating costs.
As ZF navigates this challenging landscape, industry observers will be closely monitoring the company's restructuring efforts and their potential impacts on the broader automotive supply chain.
Section: Arts
Section: Arts
Section: News
Section: Arts
Section: Arts
Section: Arts
Section: News
Section: Arts
Section: Business
Section: Arts
Health Insurance in Germany is compulsory and sometimes complicated, not to mention expensive. As an expat, you are required to navigate this landscape within weeks of arriving, so check our FAQ on PKV. For our guide on resources and access to agents who can give you a competitive quote, try our PKV Cost comparison tool.
Germany is famous for its medical expertise and extensive number of hospitals and clinics. See this comprehensive directory of hospitals and clinics across the country, complete with links to their websites, addresses, contact info, and specializations/services.
The couple Eva-Maria and Berthold Schneider has enthusiastically and expertly built an exquisite collection of Greek vases and other works of ancient small art over the years. Personal preferences often played a role in the acquisition of pieces. For instance, a rare oil vessel dating back to around...
No comments yet. Be the first to comment!