Hella lowers FY2022 guidance despite adjusted first quarter sales and higher EBIT
By Kim Richters
Hella GmbH & Co. KGaA lowered its outlook for its current fiscal year on Thursday due to worsening supply bottlenecks and an expected drop in global vehicle production, but said sales and first quarter adjusted earnings had increased.
The German auto parts supplier said currency-adjusted and portfolio-adjusted sales over the period June 1, 2021 to May 31, 2022 are expected to be between € 6.0 billion and € 6.5 billion (7 .01 to $ 7.60 billion). He previously forecast adjusted sales of around € 6.6 billion to € 6.9 billion.
The profit margin before interest, taxes, corrected for structural measures and portfolio effects, should be around 5.0% to 7.0% in a full year, against a previous target of around 8%.
“Despite full order books, we are increasingly feeling the effects of bottlenecks in global supply and logistics chains, especially for certain electronic components. Due to the production shutdowns linked to the pandemic at some chip suppliers in Asia, the situation has worsened in recent weeks. Company CEO Rolf Breidenbach said. He added that costs were also rising, in part due to rising raw material prices.
For the first quarter ended August 31, Hella said its Adjusted EBIT reached 91 million euros, up from 56 million euros in the same period a year earlier. Its adjusted EBIT margin fell from 4.2% to 6.2%. Quarterly revenue adjusted for currency and portfolio effects amounted to 1.5 billion euros compared to 1.3 billion euros.
Hella said quarterly figures were preliminary and that she planned to release full results on September 28.
Write to Kim Richters at [email protected]