DGAP-News: HELLA KGaA Hueck & Co.: HELLA has a successful start to the fiscal year 2017/2018

HELLA has a successful start to the fiscal year 2017/2018

• First-quarter currency-adjusted sales increase of 5.8 percent; reported at 4.9 percent, to approximately EUR 1.6 billion
• Adjusted EBIT improves by 5.6 percent to around EUR 125 million; adjusted EBIT margin increases to 7.7 percent
• Automotive segment sustains growth dynamic with sales increases of 5.9 percent
• Aftermarket and Special Applications contribute to the improved result
• Positive company outlook confirmed after three months

Lippstadt, September 27, 2017. HELLA KGaA Hueck & Co., one of the world's leading automotive suppliers for lighting and electronics, has started the fiscal year 2017/2018 with an increase in sales and earnings. The consolidated sales for the first quarter (June 1 to August 31, 2017) increased over the previous year by 5.8 percent after currency adjustments. Taking negative exchange rate effects into account, sales improved by 4.9 percent to EUR 1.6 billion. Adjusted earnings before interest and taxes (adjusted EBIT) increased by 5.6 percent to EUR 125 million (previous year: EUR 118 million); the adjusted EBIT margin thus increased to 7.7 percent (previous year 7.6 percent).

"HELLA has had a good start to the new fiscal year. We have enjoyed stronger growth than the global automotive market", said HELLA CEO Dr. Rolf Breidenbach. "Along with our global positioning, our innovative product solutions for automotive market trends such as autonomous driving, energy efficiency and electrification in particular have been a key factor in this growth."

Automotive segment supports company-wide sales increase

The Automotive segment has continued its growth dynamic into the first three months of the current fiscal year. The reported sales for the segment has increased by 5.9 percent against the same quarter of the previous year to EUR 1.2 billion. This growth has, in particular, been supported by a positive business development in important core markets, as well as the demand for sophisticated lighting systems and electronics products, especially in the areas of radar sensors and energy management. As a result of capacity increases, the construction of new plants as well as R&D expenses in further profitable growth to support automotive trends, the adjusted first-quarter EBIT for the segment has reduced to EUR 91 million (previous year: EUR 98 million). The adjusted EBIT margin is thus 7.3 percent (previous year: 8.3 percent).

Aftermarket: Sales growth in third-party business of 2.0 percent

In the Aftermarket segment, sales with third-party companies have increased by 2.0 percent in the first three months of the current fiscal year. The entire segment, in particular as a result of the internal reorganization of production companies has, however, dropped slightly in terms of sales by 1.6 percent to EUR 302 million (previous year: EUR 307 million). The positive development has been driven above all by the independent aftermarket and the wholesale business. The earnings before interest and taxes (EBIT) for the segment have increased in the reporting period by 2.1 percent to
EUR 19 million, which equates to an EBIT margin of 6.4 percent (previous year: 6.2 percent).

Special Applications significantly increases sales and earnings

Reported sales in the Special Applications segment increased by 12.3 percent to
EUR 100 million in the first three months of the current fiscal year (previous year:
EUR 89 million). This increase in sales is, in particular, thanks to the internal realignment of production companies, and a strong business development in the areas of construction- and agricultural machinery as well as trailers. At the same time, the earnings before interest and taxes (EBIT) increased to EUR 16 million in the reporting period (previous year: EUR 3 million). The EBIT margin is thus 16.1 percent (previous year: 2.9 percent). This jump in results has been caused on the one hand by disproportionately high customer call-offs at the Australia location and, on the other hand, negative influences on the figures of the previous year due to the divestment of the Industries and Airport Lighting business activities.

Positive company outlook confirmed after three months

The HELLA Group has confirmed its positive company outlook after the first three months of the current fiscal year. A currency-adjusted sales growth and an increase in the adjusted EBIT of between 5 and 10 percent is expected for the 2017/2018 fiscal year in comparison with the previous fiscal year. The forecast for the adjusted EBIT margin continues to be at approximately 8 percent for this period.

Selected key financial indicators (in EUR million or as a percentage of sales):

	Q1 2017/2018	Q1 2016/2017	Change
Sales	1,629	1,553	+5%
Adjusted earnings before interest and taxes (adjusted EBIT)	125	118	+6%
Earnings before interest and taxes (EBIT)	123	117	+6%
Adjusted EBIT margin	7.7%	7.6%	+0.1pp
EBIT margin	7.6%	7.5%	+0.1pp

 

Where sums and percentages have been rounded, differences may arise as a result of commercial rounding.

The financial report for the first three months of the 2017/2018 fiscal year is now available on the HELLA KGaA Hueck & Co. website.

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, family-owned company, listed on the stock exchange, with currently over 38,000 employees at over 125 locations in some 35 countries. The HELLA Group develops and manufactures products for lighting technology and electronics for the automotive industry and also has one of the largest retail organisations for automotive parts, accessories, diagnostics, and services within Europe. With nearly 7,000 people working in research and development, HELLA is one of the most important innovation drivers on the market. Furthermore, the HELLA Group is one of the top 40 automotive suppliers in the world and one of the 100 largest German industrial companies. It achieved sales of approx. EUR 6.6 billion in the fiscal year 2016/2017.

For additional information please contact:
Dr. Markus Richter
Company spokesman
HELLA KGaA Hueck & Co.
Rixbecker Strasse 75
59552 Lippstadt
Germany
Phone: +49 (0)2941 38-7545
Fax: +49 (0)2941 38-477545
Markus.Richter@hella.com
www.hella.com