Company / 07.12.2020
 
Company / 07.12.2020

HELLA closes the second quarter better than expected according to preliminary data and raises the forecast for the full year

  • Currency- and portfolio-adjusted group sales in the second quarter grow, compared to the previous fiscal year, by 4.4 percent to around EUR 1.8 billion (first half of fiscal year 2020/2021: increase by -2.7 percent to around EUR 3.2 billion) 
  • Positive market development and strict cost management leads to increase of adjusted EBIT margin to 12.1 percent in the second quarter (first half of fiscal year 2020/2021: 8.7 percent) 
  • In view of the business development to date, despite high market uncertainties in the second half of the year, the forecast for the full fiscal year 2020/2021 will be raised 
  • Continuation of the program to strengthen competitiveness in the long term is still absolutely necessary, due to reduced market volumes in the medium term and increasingly intense competition
12/07/2020
12/07/2020

Lippstadt, 7 December 2020. In the second quarter (1 September to 30 November 2020), the global automotive supplier HELLA developed better than expected at the beginning of the fiscal year. Based on preliminary data, compared to the second quarter of the previous fiscal year, the currency- and portfolio-adjusted sales increased by 4.4 percent to around EUR 1.8 billion (previous year: EUR 1.7 billion). As a result of the faster market recovery and the consistent cost management approach of HELLA, the adjusted EBIT margin increased to 12.1 percent in the same period (previous year: 8.3 percent). Hence, the positive business development from the first quarter continues.Based on preliminary data for the first half of the fiscal year, sales adjusted for currency and portfolio effects amount to around EUR 3.2 billion (previous year: EUR 3.2 billion), and the adjusted EBIT margin amounts to 8.7 percent (previous year: 7.8 percent).

"The positive sales development is primarily due to the fact that we have received significantly more tailwind from the market in recent months than was assumed at the beginning of the financial year", says HELLA CEO Dr Rolf Breidenbach. "In particular, the development on the profit side is also pleasing. In view of the continuing high level of uncertainty and increasing competitive intensity in the industry, this is only a snapshot, but it shows that we are on the right track, not least thanks to our strong product portfolio, our high cost discipline and the high level of commitment of our employees."

Given the development of the business to date and the current market outlook, HELLA has raised its forecast for the full fiscal year 2020/2021 (1 June 2020 to 31 May 2021). The Company now expects currency- and portfolio-adjusted sales in the range of around EUR 6.1 to 6.6 billion (previously: EUR 5.6 to 6.1 billion) and an adjusted EBIT margin in the range of around 6.0 to 8.0 percent (previously: 4.0 to 6.0 percent). Added to this is the expected income of approximately EUR 100 million before taxes from the sale of the camera software business to Car.Software Org of Volkswagen, which was initiated in September. The adjustment of the company’s forecast is also based on the assumption that there will be no further COVID-19 lockdowns that have a material impact on HELLA’s business.

"Due to the current market development, we are now much more optimistic about the current fiscal year and have adjusted our forecast accordingly", says Dr Rolf Breidenbach. "However, this should not hide the fact that the market environment remains highly volatile. We expect market conditions to remain challenging. This makes it all the more important, in view of the increasing competition and cost pressure, that we now resolutely adhere to the structural measures we have introduced in order to secure our position as one of the world’s leading automotive suppliers for the future."

In light of the announcement of the preliminary financial results for the first half of the fiscal year and the adjustment of the company’s outlook, an explanatory conference call for analysts and investors will take place on Tuesday, 8 December 2020 at 10:30 hrs (CET). The publication of the final figures for the first half of the financial year takes place as planned on 14 January 2021.
 
2020
 
 
 
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12/07/2020
Contact
Dr. Markus Richter
Company Spokesman
Rixbecker Str. 75
59552 Lippstadt, Germany
Tel.: +49 2941 38-7545
Fax: +49 2941 38-477545
Markus.fmbo@qdybRichter@hella.com
 
12/01/2020