DGAP-News: HELLA KGaA Hueck & Co.: HELLA reports accelerated growth and a significant increase in earnings

HELLA reports accelerated growth and a significant increase in earnings in the third quarter of fiscal year 2016/2017

- Sales rise by a substantial 5.5% and earnings before interest and taxes by 18.4% over the third quarter

- Consolidated sales over the nine-month period increase to EUR 4.8 billion: +3.5% after adjustment for currency and portfolio effects (reported +2.6%)

- Adjusted EBIT over the first nine months grow significantly by 8.1% to EUR 373 million; the adjusted EBIT margin improves to 7.8%

- Dr Jürgen Behrend retires as Managing General Partner on 30 September 2017 after the Annual General Meeting

Lippstadt, 06 April 2017. HELLA KGaA Hueck & Co., a globally leading supplier of lighting technology and electronic products for the automotive industry, improved sales and earnings over the first nine months of this fiscal year 2016/2017 (1 June 2016 to 28 February 2017). Adjusted for negative exchange rate effects and effects from the sale of the Industries and Airport Lighting activities, sales over the period increased by 3.5%. Reported consolidated sales including these special effects grew by 2.6% to a total EUR 4.8 billion (prior year EUR 4.7 billion).

"As we had projected, our business growth accelerated substantially in the third quarter," says HELLA CEO Dr Rolf Breidenbach. Consolidated sales increased by 5.5% (adjusted for currency and portfolio effects by 5.7%) to EUR 1.6 billion. The group-wide sales growth was driven mainly by the momentum in the Automotive segment. "This positive development is in large part the result of numerous successful production ramp-ups for new client models."

Adjusted earnings before interest and taxes (adjusted EBIT) over the nine-month period grew by 8.1% to EUR 373 million (prior year: EUR 345 million). The adjusted EBIT margin increased year on year by 0.4 percentage points to 7.8%. Unadjusted for special effects, earnings before interest and taxes (EBIT) improved by 20.2% to EUR 348 million (prior year: EUR 290 million), the EBIT margin rose by 1.1 percentage points to 7.3%.

In the third quarter, adjusted EBIT grew by 17.2% year on year to EUR 105 million (prior year: EUR 89 million). This corresponds to an EBIT margin of 6.6% (prior year: 6.0%). Taking special effects into account, EBIT rose to EUR 103 million in the third quarter (prior year: EUR 87 million), which equates to an EBIT margin of 6.5% (prior year: 5.8%).

Production ramp-ups drive growth momentum in the Automotive segment

External sales in the first nine months of fiscal year 2016/2017 grew by 2.4% to EUR 3.6 billion in the Automotive segment (prior year: EUR 3.5 billion). Growth in the Automotive segment was mainly driven by strong demand for innovative lighting solutions and electronics products, for instance in the area of energy management. Particularly in the third quarter, numerous production ramp-ups led to stronger growth momentum in the segment. The profitability of the Automotive segment increased significantly over the nine-month period with earnings before interest and taxes in the segment by 12.7% to EUR 314 million compared to the adjusted prior-year numbers (prior year: adjusted EUR 279 million). The EBIT margin improved accordingly to 8.6%.

Broad portfolio contributes to sales growth in the Aftermarket segment

External segment sales in the Aftermarket segment increased by 5.5% to EUR 923 million over the first nine months of the fiscal year (prior year: EUR 875 million). All businesses of the segment contributed to the sales growth. Earnings before interest and taxes grew by 4.5% to EUR 58 million (prior year: EUR 56 million) over the first nine months with the corresponding EBIT margin stable year on year at 6.1%.

 

Special Applications: Modest sales growth in the core business

External sales over the first nine months of this fiscal year declined by 4.6% to EUR 217 million in the Special Applications segment (prior year: EUR 228 million). Adjusted for the divested business activities Industries and Airport Lighting, however, sales of the remaining business activities increased slightly by 0.2% in the context of a still difficult market environment in the agricultural sector. Positive contributions come from the business for trailers. The segment's EBIT declined to EUR 2.3 million (prior year: EUR 11.8 million) over the first nine months of this fiscal year due to the wind-down of the divested business activities and the relocation of production capacity to Eastern Europe. This brings the EBIT margin to 1.0% (prior year: 5.1%).

Full-year sales and earnings guidance for fiscal year 2016/2017 confirmed

Nine months into fiscal year 2016/2017, HELLA Group remains confident that the business will continue to grow. HELLA continues to project exchange-rate and portfolio-adjusted sales growth, a rise in the adjusted EBIT in the mid-single-digit percentage range and an adjusted EBIT margin at the prior year level for fiscal year 2016/2017.

Dr Jürgen Behrend to retire on 30 September 2017

As announced, Dr Jürgen Behrend will retire as Managing General Partner of HELLA KGaA Hueck & Co. this year. Since a vote by the Annual General Meeting of HELLA KGaA Hueck & Co., which will be held this year on 28 September 2017, is legally required in this context, Dr Behrend will retire on 30 September 2017, i.e. immediately after the Annual General Meeting. Selected financials (in EUR million or percent of sales respectively):

	Nine months 2016/2017	Nine months 2015/2016	Change
Sales	4,776	4,654	+2.6%
Adjusted earnings before interest and taxes (adj. EBIT)	373	345	+8.1%
Earnings before interest and taxes (EBIT)	348	290	+20.2%
Adjusted EBIT margin	7.8%	7.4%	+0.4pp
EBIT margin	7.3%	6.2%	+1.1pp

 

Please note that where sums and percentages have been rounded, differences may arise as a result of commercial rounding.

The statement for the first nine months of fiscal year 2016/2017 is available for downloading as of today from the website of HELLA KGaA Hueck & Co.

Please note:
This text and corresponding photo material can also be found in our press database at: www.hella.com/press

HELLA KGaA Hueck & Co., Lippstadt:
HELLA is a global, listed family business with currently approx. 36,000 employees at over 125 locations in some 35 countries. HELLA Group develops and manufactures lighting technology products and electronic components for the automotive industry and still has one of the largest retail organizations for automotive parts, accessories, diagnostics, and services within Europe. Complete vehicle modules, air-conditioning systems, and vehicle electrical systems are also produced in joint venture companies. With more than 6,000 people working in research and development, HELLA is one of the most important innovation drivers on the market. In addition, with sales of EUR 6.4 billion in fiscal year 2015/2016, HELLA Group is one of the top 40 automotive suppliers in the world and one of the 100 largest German industrial companies.

For more information:
Dr Markus Richter
Company spokesperson
HELLA KGaA Hueck & Co.
Rixbecker Straße 75
59552 Lippstadt
Deutschland
Tel.: +49 (0)2941 38-7545
Fax: +49 (0)2941 38-477545
Markus.Richter@hella.com
www.hella.com