ZF Rubber-metal sales declined slightly in 2006

Damme, Germany - Sales at the rubber-metal bonding unit of ZF, ZF Boge Elastmetall, declined slightly in the year to December, 2006. In the company's annual report, it said, "In the year under review, business unit sales fell by 4 percent to €515 million. This resulted from exchange rate effects as well as the sale of Sun Manufacturing & Coatings LLC, Williamstown, Kentucky/USA. Continued increase in energy and raw material costs put a strain on results."

The company said it expected sales in 2007 to be higher than 2006, adding, "Price pressure from automotive manufacturers and the necessity to relocate production to best cost countries in the Asian-Pacific region will continue. The business unit will expand its presence in growth markets and with the rapidly growing, primarily Asian, automotive manufacturers."

In Europe, the business unit received an order from an unidentified Asian customer to develop and supply powertrain suspension systems for a volume production passenger car platform. A collaboration agreement for strategic cooperation was also concluded with this same customer, said the company. The two companies signed a contract to develop and supply products, such as switchable engine mounts for luxury passenger cars.

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Website of ZF Boge Elastmetall

Annual results conference links at ZF