Global vehicle production decline impacts HELLA but aftermarket profitability improves

Global automotive supplier reports fall in sales and earnings in first half of fiscal year 2019/2020

Global vehicle production decline impacts HELLA but aftermarket profitability improves

Amid a slowing economy and a challenging industry environment, global automotive supplier HELLA, reported a decline in sales and earnings in the first half of fiscal year 2019/2020.

Decline in global light vehicle production impacts automotive business
reported sales from the automotive segment decreased in the first half of the fiscal year by 1.6 per cent to €2.8 billion (prior year: €2.9 billion).

The decrease was largely attributed to a worldwide decline in light vehicle production, which shrank by 6.1 per cent in the six month period.

HELLA CEO Dr. Rolf Breidenbach said: “Given the challenging market environment, our sales and earnings declined as was expected in the first half of the year.

“However, we once again outperformed the market, which speaks to the attractiveness of our products and the strength of HELLA’s business model.

“Overall, we are satisfied with the development of our business.”

Profitability improves for aftermarket

The reported sales of the aftermarket segment dropped by 3.8 per cent to €323 million in the first half of the fiscal year (prior year: €336 million).

Demand for spare parts was much weaker in Southwest Europe and the Middle East in particular.

The business with workshop products was also down from the previous year; a year in which product demand was extraordinarily strong because of new regulatory requirements.

Challenging market

“The market environment remains very challenging,” said Dr. Rolf Breidenbach.

“A strong, sustained recovery is not likely to emerge in 2020.

“However, we are still reaffirming our annual targets.

“We will vigorously capitalise on the current phase of market weakness to improve our competitiveness and continue investing in innovative solutions for the market trends of electrification and autonomous driving.”

For the current fiscal year, HELLA expects currency and portfolio-adjusted consolidated sales of around €6.5 billion to €7.0 billion, as well as an EBIT margin adjusted for restructuring measures and portfolio effects of between 6.5% and 7.5%.

For further information about HELLA, select ‘more details’ below.

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