HELLA reveals half-year results

Workshop business drives positive development in firm’s aftermarket segment

In the first six months of the fiscal year 2021/2022, massive bottlenecks with electronic components have significantly burdened the development of sales and earnings at the international automotive supplier HELLA.

As of today, HELLA has presented the complete and final half-year figures, thereby confirming preliminary key figures published on 29 November 2021.

The currency and portfolio-adjusted sales of the HELLA Group fell accordingly in the first half-year (1 June until 30 November 2021) by 2.6 per cent to € 3.0 billion (prior year: € 3.1 billion); as reported, sales declined by 2.0 per cent.

In the second quarter, the currency and portfolio-adjusted sales fell by 11.9 per cent to € 1.5 billion (prior year: € 1.8 billion).

Due to the reduced sales volumes and increasing cost pressure, the adjusted earnings before interest and taxes (EBIT) fell to € 156 million in the first six months (prior year: € 269 million); the adjusted EBIT margin is at 5.1 per cent (prior year: 8.7 per cent).

In the second quarter, the adjusted EBIT margin amounted to 4.1 per cent (prior year: 12.1 per cent). In the first half-year, the EBIT is at € 149 million (prior year: € 94 million); the reported EBIT margin amounts to 4.9 per cent (prior year: 3.0 per cent).

The lower figures from the prior year can be attributed to the expenses recorded for the programme to sustainably improve competitiveness.

“At present, there are great challenges in the market environment.

“Due to the massive bottlenecks in the global supply and logistics chains, the global light vehicle production sustained a drastic collapse in the second fiscal quarter in particular”, says HELLA CEO Dr. Rolf Breidenbach.

“Despite these adverse conditions, however, we performed well overall.

O2ur Automotive segment continued to develop significantly better than the overall market, which underscores our strong strategic orientation in this area.

“In addition, the business development posted by both of our other segments Aftermarket and Special Applications was also favourable.”

In the Aftermarket segment, sales rose by 17.1 per cent to € 283 million in the first half-year (prior year: € 241 million).

The independent spare parts business developed particularly well in Germany, Poland and the Americas.

In the workshop area, a particularly positive influence on sales came from the market launch of the new mega macs X diagnostic device.

As a result of the higher sales volumes, the Aftermarket segment’s EBIT improved to € 33 million in the first six months (prior year: € 29 million); the EBIT margin stands at 11.8 per cent (prior year: 11.9 per cent).

Given the business development to date, the expected lack of market recovery in the second half of the year and increasing cost burdens, HELLA further lowered its sales and earnings forecast for the current fiscal year already on 29 November 2021.

For fiscal year 2021/2022 (1 June 2021 until 31 May 2022), the Company anticipates currency and portfolio-adjusted sales of between around € 5.9 and 6.2 billion (previously adjusted: around € 6.0 to 6.5 billion) and an EBIT margin adjusted for structural measures and portfolio effects of around 3.5 to 5.0 per cent (previously adjusted: around 5.0 to 7.0 per cent).

Especially with a view to the third quarter of the fiscal year, the company sees major challenges with lower production volumes and further increasing cost burdens in light of the ongoing shortage of materials and components.

“The industry environment remains challenging. For the current fiscal year, we anticipate a considerable decline in light vehicle production.

“The component shortages are expected to persist into 2023.

“The coronavirus pandemic is continuing to cause considerable uncertainties as well”, says HELLA CEO Dr. Rolf Breidenbach.

“Nevertheless, not least because of our established cost management, our innovative product portfolio and well-filled order book, we are confident that our development will remain significantly better than that of the overall market.”


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