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 € 3.6 billion (previous year: € 3.5 billion).
The adjusted earnings before interest and taxes (adjusted EBIT) increased during the six-month period by 5.5 percent to € 302 million (prior year: € 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 €537 million (previous year: €290 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 € 2.9 billion (previous year: € 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 € 244 million (prior year: € 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 € 336 million (prior year: € 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 € 25 million. The adjusted EBIT margin thus is 7.6 percent (prior year: 7.7 percent).
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SOURCE: HELLA
