As TRW deal pays off, ZF focus is autonomous

FRIEDRICHSHAFEN, Germany -- ZF Friedrichshafen AG's enormous 2015 acquisition of TRW is paying off now, according to year-end earnings figures released here last week, and the supplier is pressing ahead with its ambition to become a global force in emerging autonomous vehicle technology.

In its first financial report to reflect a full year of consolidated ZF and TRW operations, ZF said last week that group sales rose 21 percent to 35.2 billion euros ($37.8 billion). Adjusted earnings before interest and taxes rose 20 percent to $2.36 billion for 2016, a 6.4 percent margin.

It expects to achieve an adjusted operating margin of more than 6 percent and group sales of $38.65 billion this year as it continues to absorb the TRW acquisition.

ZF paid $12.4 billion to acquire U.S.-based TRW in May 2015, combining ZF's traditional business in transmissions, chassis parts, steering and clutches with TRW's prowess in safety systems.

ZF also said last week that it has acquired a 45 percent stake in Astyx Communication & Sensors GmbH, a small German high-tech firm that develops and produces ultra-high-frequency radar sensors and modules.

ZF characterized the deal as a significant step in its move into advanced autonomous technologies. 

Radar is a crucial technology in object recognition -- a feature that will aid future vehicles in accident avoidance and autonomous driving. 

Astyx, based in Ottobrunn near Munich, makes sensors and modules for short- and long-range radar for the auto industry, satellite technology, aerospace and industrial applications. The company was created in 1997 as a spinoff from Daimler Benz Aerospace AG (now European Aeronautic Defence and Space Co.). 

ZF CEO Stefan Sommer declined to say what ZF paid for the stake. 

In a statement, Sommer said, "With our investment in radar technology, we are reinforcing the eyesight of future cars."

Reuters contributed to this report.