According to preliminary figures, the Hella Group closed the 2019/2020 financial year with a decline in sales from EUR 6.8 billion to EUR 5.8 billion. Before interest and taxes, adjusted operating profit fell from EUR 572 million to EUR 233 million, which means that the profit margin has more than halved to 4 percent. “The preliminary business results are in the range of the last published forecast range,” says the company, which, including special effects before interest and taxes, must report a loss of 343 million euros. The corona pandemic was only partially able to compensate for burdens, management said.
With more than half a billion euros, depreciation on unadjusted earnings also had an impact and pushed this into the red. “These had to be taken into account in the fourth quarter of the past financial year and result from the assumption that the global production volume of cars and light commercial vehicles will also be significantly below the planning assumptions and market expectations made before the Corona crisis, and this will result in lower capacity utilization of the global HELLA production network, ”said Hella.
For the 2020/2021 financial year, the company expects sales of between € 5.6 billion and € 6.1 billion. Hella expects the EBIT margin to range between 4.0 percent and 6.0 percent. However, there is still a high degree of uncertainty about the development of the markets, and vehicle production worldwide is also reduced. Hella is responding to the developments with an investment program in areas such as automation and software as well as further cost reductions. “In this context, we plan to reduce the number of administrative and development positions at the company’s headquarters in Lippstadt by around 900,” the company said on Tuesday.
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