FRIEDRICHSHAFEN, Germany -- ZF Friedrichshafen said it expects to achieve an adjusted operating margin of more than 6 percent and group sales of 36 billion euros ($38.65 billion) this year as it absorbs the acquisition of rival TRW Automotive.
ZF bought U.S. rival TRW in 2015 for $13.5 billion, boosting the Germany-based supplier's sales and profits.
Last year, unlisted ZF's adjusted earnings before interest and taxes (EBIT) rose 20 percent to 2.2 billion euros, the company said in a statement released Thursday.
Group sales rose 21 percent to 35.2 billion euros, corresponding to an EBIT margin of 6.4 percent.
ZF said the company's performance was mainly due to "better operating performance and synergies leveraged by integrating TRW."
ZF was able to reduce its debt load by roughly 1.6 billion euros to 8.26 billion euros, thanks to a strong free cash flow of more than 2 billion euros, and further debt reduction remains a central target for 2017.
ZF on Thursday said it had bought a 45 percent stake in radar technology company Astyx.