11/01-2019 07:00:02: (E-HLED.BTSE) DGAP-News: HELLA increases sales and earnings in a challenging market environment
DGAP-News: HELLA GmbH & Co. KGaA / Key word(s): Half Year Results
HELLA increases sales and earnings in a challenging market environment
Lippstadt, January 11, 2019. HELLA, a global automotive supplier, has concluded the first six months of the fiscal year 2018/2019 (June 1 to November 30, 2018) with positive sales and earnings in a challenging market environment. Thus, the currency- and portfolio-adjusted consolidated sales rose by 7.3 percent. Taking into account exchange rate effects and the divestment of the wholesale distribution business, the reported sales increased by 2.8 percent to EUR 3.6 billion (previous year: EUR 3.5 billion).
The adjusted earnings before interest and taxes (adjusted EBIT) increased during the six-month period by 5.5 percent to EUR 302 million (prior year: EUR 286 million). This corresponds to an adjusted EBIT margin of 8.6 percent (prior year: 8.7 percent). Particularly in light of the divestment of the wholesale distribution business, the reported earnings before interest and taxes (EBIT) increased significantly to EUR537 million (previous year: EUR290 million). The reported EBIT margin therefore is 15.1 percent (prior year: 8.4 percent).
"We now have a challenging first half-year behind us that was marked by further increasing market uncertainty and high fluctuations in demand. Our increase in sales and earnings shows that to date, we have been able to compensate for these challenges," says HELLA CEO Dr. Rolf Breidenbach. "This is proof of the resilience and good strategic alignment of our business model along major automotive market trends such as Autonomous Driving, Electromobility and Digitization. Still, we have to expect that the headwinds will continue to increase in the months to come."
Automotive segment drives Group-wide sales growth
The group-wide increase in sales was supported in particular by the Automotive segment in the first half-year, which grew by 8.1 percent to EUR 2.9 billion (previous year: EUR 2.7 billion). The increased sales are primarily the result of continued high demand for lighting systems and electronics solutions, especially in the Driver Assistance Systems and Energy Management areas. The adjusted EBIT of the segment increased to EUR 244 million (prior year: EUR 238 million). The adjusted EBIT margin is thus reduced, among other things due to a disproportionate increase in research and development expenditure, to 8.5 percent (previous year: 9.0 percent).
Workshop equipment business supports growth in Aftermarket
In the Aftermarket segment, without taking the sold wholesale distribution business activities into account, sales increased by 4.5 percent to EUR 336 million (prior year: EUR 321 million) in the first half-year. In particular, the business with sophisticated workshop equipment such as emissions testing devices and beamsetters supported sales growth. Adjusted EBIT of the segment remains at the prior-year level with EUR 25 million. The adjusted EBIT margin thus is 7.6 percent (prior year: 7.7 percent).
Special Applications shows positive development in the business for agricultural and construction vehicles
In the Special Applications segment, the business for agricultural and construction vehicles and trailers has developed successfully. However, the reported sales of the segment declined by a total of 3.7 percent to EUR 204 million (previous year: EUR 211 million) as a result of the closing of the production location in Australia. In contrast, the profitability of the segment has improved further. The segment's reported EBIT increased by 14.3 percent to EUR27 million (prior year: EUR24 million); the reported EBIT margin therefore amounts to 13.3 percent (prior year: 11.2 percent).
Continuing positive business development expected for the current fiscal year 2018/2019
From the current perspective, the HELLA Group continues to anticipate positive business development for the current fiscal year 2018/2019 (June 1, 2018, to May 31, 2019) and confirms its current company outlook. "However, we assume that the market environment will continue to weaken in the months to come," Dr. Breidenbach adds. "This is primarily due to the significant decline in demand from the Chinese automotive market, volatility in conjunction with the new WLTP emission testing method, and uncertainty in the overall economic environment." Assuming that the automotive market will not suffer any additional weakening in the second half of the fiscal year, HELLA is currently expecting that the currency- and portfolio-adjusted sales growth will be at the lower end and the increase in earnings before interest and taxes adjusted by restructuring measures and portfolio effects (adjusted EBIT) will be in the lower half of the given forecast range from 5 to 10 percent. With regard to the EBIT margin adjusted for restructuring measures and portfolio effects, an adjusted EBIT margin approximately equivalent to the value of the prior year is still expected.
Selected key financial figures (in EUR millions or as a percentage of sales):
Where sums and percentages have been rounded, differences may arise as a result of commercial rounding.
The six month report for the fiscal year 2018/2019 can now be downloaded on the website of
11.01.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||HELLA GmbH & Co. KGaA|
|Rixbecker Str. 75|
|Phone:||+49 (0)2941 38-7125|
|Fax:||+49 (0)2941 38-6647|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Munich, Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Tradegate Exchange; Luxembourg Stock Exchange|
|End of News||DGAP News Service|
HELLA GmbH & Co. KGaA
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