LIPPSTADT (GERMANY)

6 November 2024

 
Nine-month financial results 2024:
FORVIA HELLA with stable sales and solid profitability
in a challenging market environment     

• Currency-adjusted sales increase by 0.8 percent to €6.0 billion;
  
  reported sales at the previous year's level of €5.9 billion


• Operating income at €344 million; operating income margin of 5.8 percent


• Net cash flow in relation to sales at -0.1 percent; significant improvements expected in the fourth quarter


• Growth of the Business Group Lighting drives Group-wide sales development; Electronics and Lifecycle Solutions record decline in sales


• Company outlook adjusted on 26 September 2024 is confirmed

HELLA GmbH & Co. KGaA (\"FORVIA HELLA\") today presented its full financial results for the first nine months of the fiscal year 2024 (1 January to 30 September 2024). Adjusted for currency effects, sales improved slightly by 0.8 percent to €6.0 billion, while reported sales are at a level €5.9 billion and on a par with the prior year (previous year: €5.9 billion). In the reporting period, FORVIA HELLA thus performed significantly better than global light vehicle production, which declined by 1.6 percent overall in the first nine months of 2024.

Operating income amounted to €344 million (previous year: €363 million), resulting in a slight decline in the operating income margin to 5.8 percent (previous year: 6.1 percent). Net cash flow in relation to reported sales is -0.1 percent (previous year: 0.7 percent); significant improvements in net cash flow are expected for the fourth quarter of 2024.

\"The general conditions in the automotive industry have deteriorated further. While a stagnating global light vehicle production was projected at the beginning of the year, there has instead been a noticeable decline overall. Production volumes dropped significantly in the third quarter, and especially the European market came under particular pressure during this period,\" says Bernard Schäferbarthold, CEO of FORVIA HELLA. \"We too have been affected by this factor, especially since our customer mix, postponements of new series launches and the slower ramp-up of electromobility had a negative impact on our business as well. In this very challenging market environment, we were able to keep our sales stable and outperform the development of global automotive production overall. On the cost side, we have succeeded in partially compensating for the lower-than-expected business volumes in particular.\"

Growth of the Business Group Lighting drives Group-wide sales development; Electronics and Lifecycle Solutions record decline in sales

The sales development in the first nine months was driven by the Business Group Lighting, which grew by 4.1 percent year-on-year to €3.0 billion (previous year: € 2.9 billion). A key factor is the full consolidation of the Chinese joint venture Beijing Hella BHAP Automotive Lighting since this year. In addition, series launches in the American market as well as higher customer call-offs for individual series projects in Europe supported the development of the Business Group.

In the Business Group Electronics, sales fell by 3.9 percent to €2.4 billion (previous year: €2.5 billion). The radar business continued to develop positively overall, also supported by new launches in the American market. However, customer-related postponements of new launches, customer and product mix effects in China and the slowdown in electrification in Europe this year had a negative impact on the Business Group Electronics.

In the Business Group Lifecycle Solutions, sales declined by 5.7 percent to €0.77 billion (previous year: €0.82 billion). The independent spare parts business developed positively in key European markets, also resulting from an expansion of the electric/electronics portfolio. In contrast, due to the generally weaker economic environment, investments within the commercial vehicle sector have decreased significantly, particularly in business with manufacturers of agricultural and construction machinery.

Company outlook adjusted on 26 September 2024 is confirmed

On 26 September 2024, FORVIA HELLA announced to adjust its forecast for the fiscal year 2024 (1 January to 31 December 2024); the Company confirms the updated outlook with the presentation of its nine-month financial results. Accordingly, FORVIA HELLA expects currency and portfolio-adjusted sales of between around €7.9 and 8.1 billion for the current year, an operating income margin of between around 5.5 and 6.0 percent and net cash flow as a percentage of reported sales of around 2.2 and 2.7 percent.

\"We expect both the fourth quarter of 2024 as well as the year 2025 to remain volatile and challenging for the automotive industry as a whole, and that a profound market recovery is not expected for the time being,\" says CEO Bernard Schäferbarthold. \"We will therefore consistently press ahead with our strategic initiatives and have already achieved significant successes against this backdrop: On the one hand, in order to broaden our business regionally and make it more resilient, we have already acquired two-thirds of all new orders in the Asian and American markets in the current year. On the other, we are continuously improving our cost base, also in connection with the accelerated implementation of our competitiveness program for Europe. In conjunction with increased synergy effects from the FORVIA cooperation, profitability and cash generation will benefit from this as early as 2025.\"

Selected key financial figures in € millions or as a percentage of reported sales for the first nine months of the fiscal year (1 January to 30 September each):
 

The financial statement for the first nine months of the 2024 fiscal year is now available on the
website of HELLA GmbH & Co. KGaA .

Note: This text and suitable images can also be found in our press database at: www.hella.com/press