In the first nine months of the current fiscal year 2019/2020, sales and earnings of the internationally positioned automotive supplier, HELLA, have developed in line with expectations, despite the outbreak of the coronavirus.
On a provisional basis, currency and portfolio-adjusted sales decreased by 3.7 per cent to €4.8 billion.
The adjusted earnings before interest and taxes have sunk to €347 million; accordingly, the adjusted EBIT margin is at 7.2 per cent.
In contrast, the adjusted free cash flow from operating activities has considerably improved in the nine-month period and is now at €191 million.
HELLA says the COVID-19 pandemic have significant effects on the global automotive industry, including the demand for automotive lighting and electronics.
As a reaction, in addition to the existing cost control programme, the company has adopted a comprehensive set of measures to reduce staff and material costs.
Despite these countermeasures due to the ongoing spread of the coronavirus, HELLA expects not to achieve its business objectives for the current fiscal year 2019/2020.
The company is now anticipating currency and portfolio adjusted sales to be below the originally forecasted range of approximately €6.5 billion to €7 billion.
Depending on the development and duration of the loss of business, the EBIT margin is also adjusted for restructuring measures and portfolio effects are estimated to fall considerably below the originally forecasted target of 6.5 per cent to 7.5 per cent.
The detailed nine-month results for the current fiscal year 2019/2020 will be published on 2 April 2020.
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