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Weak automotive economy leaves clear traces at Hella’s figures

Weak automotive economy leaves clear traces at Hella’s figures

Business news |
By Christoph Hammerschmidt



Adjusted operating earnings (adjusted EBIT) fell to EUR 257 million in the first half of the year (previous year: EUR 296 million). Reported EBIT fell to 230 million euros (previous year: 537 million euros). This sharp decline is mainly due to the extraordinary income from the sale of the wholesale business in the previous year. “In view of the challenging market environment, our sales and earnings declined as expected in the first half of the year,” said Hella CEO Rolf Breidenbach. “We are therefore satisfied with our business development overall,” said Breidenbach.

The main reason for the decline in sales in the Automotive segment of 1.6% to 2.8 billion euros was the global decline in vehicle production, which fell by 6.1% in the half-year period. Hella nevertheless considers itself to be in a better situation than its competitors. This is due to the high demand for electronic products, especially in the field of energy management and sensors, as well as strong business development in the American market. As a result of the comparatively lower business volume as well as continued high investments in research and development, the EBIT of this segment fell to 213 million euros (previous year: 244 million euros).


After the first six months, Hella confirms its forecast for the full fiscal year 2019/2020: “The market environment remains very challenging. A sustained recovery is not expected in 2020,” said Dr. Rolf Breidenbach. “Nevertheless, we confirm our annual targets. We will consistently use the phase of current market weakness to further strengthen our competitiveness and continue to invest in innovative solutions for the major trend themes of electrification and autonomous driving”.

Meanwhile, Hella is continuing its strategy of strengthening its competitiveness by increasing the software share of its products. Just recently, the company announced a strategic partnership with the US start-up Oculii. The aim is to develop high-performance, scalable radar solutions that meet the requirements for both assisted and automated driving. In this partnership, both companies will combine their complementary know-how and their respective technology expertise. Hella has also acquired a “strategic investment” in Oculii.

 

Related articles:

Infineon, Oculii join forces on automotive radar software

Hella sells relay business to Hongfa

Hella introduces electromobility strategy

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