CHINA - Media OutReach - 14 January 2019 - This news release is made by
Johnson Electric Holdings Limited ("Johnson Electric" or the "Company") for the
business operations and selected unaudited financial information of the Company
and its subsidiaries (the "Group") for the nine months ended 31 December 2018.
The Board of Directors of
the Company considers the publication of quarterly performance updates to be
consistent with international corporate disclosure best practice. The objective
of this news release is to provide transparency and to ensure that investors
and potential investors receive equal access to the same information at the
Group's sales for the nine months ended 31 December 2018 were US$2,436 million
compared to US$2,342 million for the same period in 2017; an increase of 4%.
Excluding currency movements and the one month effect of the acquisition of
Halla Stackpole, which became an 80% owned subsidiary in May 2017, sales
increased by 3% to US$2,418 million.
exchange rate movements had a positive effect of US$6 million on the Group's
sales during the period. This was mainly due to the impact of the stronger Euro
against the US Dollar, comparing average exchange rates for the nine months
ended 31 December 2018 to the same period last year. The acquisition of Halla
Stackpole increased sales by US$12 million. On a pro-forma basis, excluding currency
movements, Halla Stackpole grew by approximately 9% compared to the same period
Automotive Products Group ("APG")
sales, as reported grew by US$85 million or 5%. APG's sales excluding currency
effects and the one month acquisition effect of Halla Stackpole increased by
US$68 million or 4%, with the following sales changes by region:
- Asia increased 7%
- Europe decreased 4%
- Americas increased 9%
organic sales growth was largely driven by an increase in demand for engine and
transmission oil pumps and powder metal components, as well as products for thermal
cooling and seat adjust applications. This was partly offset by reduced demand
for products for window lift, doorlock and heating, ventilation and air
conditioning applications, especially in Europe.
Industry Products Group ("IPG")
IPG's sales, excluding currency
effects, increased by US$8 million or 1% compared to the same period last year.
Sales changes by region were:
- Asia increased 1%
- Europe decreased 1%
- Americas increased 4%
sales were flat in Asia and Europe. In the Americas, revenue growth was driven
by volume growth in the ventilation and medical devices segments and by winning
new platforms in the piezo shutters market.
Chairman's Comments on Year-to-Date
Sales Performance and Outlook
the year-to-date sales performance and the outlook for the remainder of the current
financial year, the Chairman and Chief Executive, Dr. Patrick Shui-Chung Wang,
said, "The current operating environment and performance trajectory of the
business presents a rather mixed picture.
On the positive side, Johnson Electric continues to make pleasing
progress in winning new business and delivering innovative solutions that help
enable electrification, reduce emissions, improve fuel economy and achieve
higher performance functionality for our customers' end products.
Counterbalancing this, overall market demand has slowed in recent months and
the macro-economic outlook heading into 2019 is highly uncertain. Both of our
operating divisions continue to target a modest rate of sales growth for the
full year, but this will be subject to a number of new product launches
scheduled for the fourth quarter remaining on schedule and to there not being a
further deterioration in global economic conditions and consumer confidence."
and potential investors in the Company are reminded that the information
provided in this news release, including information related to the expected
outlook for the full year, is based on the Group's unaudited internal records
and management accounts. This information has not been reviewed or audited by
the Company's auditors.
and potential investors should exercise caution when dealing or investing in
the shares of the Company.
About Johnson Electric
The Johnson Electric Group is a
global leader in electric motors, actuators, motion subsystems and related
electro-mechanical components. It serves a broad range of industries including
Automotive, Smart Metering, Medical Devices, Business Equipment, Home
Automation, Ventilation, White Goods, Power Tools, and Lawn & Garden
Equipment. The Group is headquartered in Hong Kong and employs over 40,000
individuals in more than 20 countries worldwide. Johnson Electric Holdings Limited is listed
on The Stock Exchange of Hong Kong Limited (Stock Code: 179). For further
information, please visit: www.johnsonelectric.com.