HELLA outperformed the market in the first quarter, but the company's outlook is lowered due to significantly reduced market expectations for the current fiscal year

Date: Thursday 30 September 2021

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Although HELLA, the internationally positioned automotive supplier outperformed the market in the first quarter of the fiscal year, the company's outlook for the current fiscal year 2021/2022 is lowered due to significantly reduced market expectations, as a result of further worsening supply bottlenecks, particularly for electronic components. In the first three months of the fiscal year 2021/2022 (1 June to 31 August 2021), HELLA achieved a 9.5 percent increase in sales adjusted for currency and portfolio effects to € 1.5 billion (previous year: € 1.3 billion), based on preliminary figures. Adjusted earnings before interest and taxes (EBIT) improved to € 91 million in this period (previous year: € 56 million); adjusted EBIT margin was 6.2 percent (previous year: 4.2 percent).

“Even though we again outperformed the market in the first three months, the start of the new fiscal year was very challenging,” says HELLA CEO Dr. Rolf Breidenbach.

“Despite full order books, we are increasingly feeling the effects of bottlenecks in global supply and logistics chains, particularly with regard to certain electronic components. Due to pandemic-related production shutdowns at some chip suppliers in Asia, the situation has worsened in recent weeks. As a result, a significant decline in global vehicle production is expected according to the latest forecasts. In addition, the burdens on the cost side are also increasing, due among other things to further rises in material and raw material prices.”

The latest market forecasts from renowned industry service providers and market analysts now predict that global vehicle production will decline by more than eight percent in the current fiscal year 2021/2022 (1 June 2021 to 31 May 2022). In July 2021, growth of almost four percent was still expected. In view of this significant downward correction, HELLA has lowered its forecast for the fiscal year 2021/2022 accordingly. For this period, the company now expects sales adjusted for currency and portfolio effects in the range of around € 6.0 to 6.5 billion (previously: around € 6.6 to 6.9 billion) and an EBIT margin adjusted for structural measures and portfolio effects of around 5.0 to 7.0 percent (previously: around 8 percent).

“The adjusted forecast ranges reflect the high uncertainties in the market,” says Dr. Breidenbach. “We will therefore continue to rigorously pursue our intensive cost management and maintain a close, ongoing exchange with our suppliers and customers in order to cushion the supply bottlenecks as far as possible. On this basis, and especially on the basis of our strong strategic positioning with regard to the key issues of the future, such as electromobility, autonomous driving, and digital light, we are well placed to continue to outperform the market.”

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