DGAP-News: HELLA with strong sales and earnings increase in the first quarter

HELLA with strong sales and earnings increase in the first quarter
 

• Currency-adjusted sales increase by 10.3 percent in the first three months; reported sales grow by 9.7 percent to EUR 1.8 billion
• Adjusted EBIT improves by 12.0 percent to EUR 140 million; adjusted EBIT margin increases to 7.8 percent
• The automotive segment is driving Group-wide growth; Aftermarket enjoys strong workshop and spare parts business; sales in the Special Applications segment equivalent to the value of the prior year
• Despite increasing market uncertainty, HELLA confirms positive company outlook for fiscal year 2018/2019

Lippstadt, September 27, 2018. The lighting and electronics expert HELLA started off fiscal year 2018/2019 with a strong increase in sales and earnings and is thus continuing its successful business development. Consolidated sales, adjusted for currency effects, therefore rose by 10.3 percent in the first quarter (June 1 to August 31, 2018) and reported sales increased by 9.7 percent to EUR 1.8 billion (prior year: EUR 1.6 billion).

At the same time, the adjusted earnings before interest and taxes (adjusted EBIT) increased by 12.0 percent to EUR 140 million (prior year: EUR 125 million), bringing the adjusted EBIT margin to 7.8 percent (prior year: 7.7 percent). Taking special effects into account, the reported earnings before interest and taxes (EBIT) increased by 12.5 percent to EUR 139 million (prior year: EUR 123 million), with the reported EBIT margin also reaching 7.8 percent (prior year: 7.6 percent).

"From a sales and earnings perspective, we can look back on a strong first quarter. In the end, our growth exceeded that of the market due to our technology leadership and our attractive product portfolio," explains HELLA CEO Dr. Rolf Breidenbach. "Even if market uncertainty will increase, we are well on our way toward achieving our annual targets."

Automotive segment drives Group-wide growth

The automotive segment was the primary growth driver in the first quarter. Reported segment sales increased by 11.2 percent to EUR 1.4 billion (prior year: EUR 1.2 billion). The reasons for this increase include numerous production ramp-ups as well as the ongoing strong demand for innovative lighting systems and electronics solutions, particularly in the areas of driver assistance systems and energy management. In addition, the profitability of the segment improved. The adjusted EBIT increased by 16.1 percent to EUR 106 million (prior year: EUR 91 million). This equates to an increase in the adjusted EBIT margin to 7.6 percent (prior year: 7.3 percent).

Aftermarket enjoys strong workshop and spare parts business

In the Aftermarket segment, without taking the wholesale distribution business activities into consideration, reported sales increased by 6.8 percent to EUR 174 million (prior year: EUR 163 million) in the first three months. This sales increase resulted in particular from the strong demand for workshop products as well as positive sales trends in the independent spare parts business. In addition, the segment's adjusted EBIT improved by 9.3 percent to EUR 15 million (prior year: EUR 13 million), with the adjusted EBIT margin therefore reaching 8.4 percent (last year: 8.2 percent) in the first quarter.

Special Applications sales equivalent to the value of the prior year

Reported sales in the Special Applications segment reached around EUR 100 million after the first three months and are therefore equivalent to the value of the prior year. The development trend particularly in the agricultural and construction vehicle area was strong in the first quarter, whereas the closing of the Australia plant had a reducing effect on sales. The segment's reported EBIT fell in the first quarter to EUR 13 million due to the positive one-time effects of the first quarter last year (prior year: EUR 16 million). The EBIT margin subsequently dropped to 12.8 percent (prior year: 16.1 percent).

Positive company outlook confirmed after the first quarter

After the first three months, HELLA confirms the positive company outlook for the current fiscal year 2018/2019 (June 1, 2018 to May 31, 2019). "We are currently experiencing a demanding, very dynamic industry environment, which is also causing ongoing increased uncertainty overall in the automotive industry," adds Dr. Rolf Breidenbach. "Nevertheless, due to our strong strategic positioning, we can confirm our forecast for the current fiscal year." HELLA will therefore continue to expect a currency and portfolio-adjusted sales growth as well as an adjusted EBIT increase of 5 to 10 percent each, and expects an adjusted EBIT margin that is approximately the equivalent to the value of the prior year.

Selected key financial figures in EUR millions or as a percentage of sales for the first three months (June 1 to August 31):

	Fiscal year 2018/2019	Fiscal year 2017/2018	Change
Reported consolidated sales	1,787	1,629	+9.7%
Adjusted earnings before interest and taxes (adjusted EBIT)	140	125	+12.0%
Reported earnings before interest and taxes (EBIT)	139	123	+12.5%
Adjusted EBIT margin	7.8%	7.7%	+0.1 pp
Reported EBIT margin	7.8%	7.6%	+0.2 pp

 

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

The financial report on the first quarter of fiscal year 2018/2019 can now be downloaded from the HELLA GmbH & Co. KGaA website.

 

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HELLA GmbH & Co. KGaA, Lippstadt: HELLA is a global, family-owned company listed on the stock exchange, employing over 40,000 people at more than 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 organizations for automotive parts, accessories, diagnostics, and services within Europe. With more than 7,000 people working in research and development, HELLA is one of the most important innovation drivers on the market. Furthermore, with sales of EUR 7.1 billion in the fiscal year of 2017/2018, the HELLA Group is one of the top 40 automotive parts suppliers in the world and one of the 100 largest German industrial companies.

For additional information please contact:
Dr. Markus Richter
Company spokesman
HELLA GmbH & Co. KGaA
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