Johnson Electric Reports Business and Unaudited Financial Information for the Third Quarter of Financial Year 2018/19

January 14, 2019 - 09:36
Johnson Electric Reports Business and Unaudited Financial Information for the Third Quarter of Financial Year 2018/19

HONG KONG,CHINA Media OutReach - 14 January 2019 - This news release is made byJohnson Electric Holdings Limited ("Johnson Electric" or the "Company") for thebusiness operations and selected unaudited financial information of the Companyand its subsidiaries (the "Group") for the nine months ended 31 December 2018.

 

The Board of Directors ofthe Company considers the publication of quarterly performance updates to beconsistent with international corporate disclosure best practice. The objectiveof this news release is to provide transparency and to ensure that investorsand potential investors receive equal access to the same information at thesame time.

 

TheGroup's sales for the nine months ended 31 December 2018 were US$2,436 millioncompared 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 ofHalla Stackpole, which became an 80% owned subsidiary in May 2017, salesincreased by 3% to US$2,418 million.

 

Foreignexchange rate movements had a positive effect of US$6 million on the Group'ssales during the period. This was mainly due to the impact of the stronger Euroagainst the US Dollar, comparing average exchange rates for the nine monthsended 31 December 2018 to the same period last year. The acquisition of HallaStackpole increased sales by US$12 million. On a pro-forma basis, excluding currencymovements, Halla Stackpole grew by approximately 9% compared to the same periodlast year.

 

Automotive Products Group ("APG")

APG'ssales, as reported grew by US$85 million or 5%. APG's sales excluding currencyeffects and the one month acquisition effect of Halla Stackpole increased byUS$68 million or 4%, with the following sales changes by region:

 

  • Asia increased 7%
  • Europe decreased 4%
  • Americas increased 9%

 

APG'sorganic sales growth was largely driven by an increase in demand for engine andtransmission oil pumps and powder metal components, as well as products for thermalcooling and seat adjust applications. This was partly offset by reduced demandfor products for window lift, doorlock and heating, ventilation and airconditioning applications, especially in Europe.

 

Industry Products Group ("IPG")

IPG's sales, excluding currencyeffects, 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%

 

IPG'ssales were flat in Asia and Europe. In the Americas, revenue growth was drivenby volume growth in the ventilation and medical devices segments and by winningnew platforms in the piezo shutters market.

 

Chairman's Comments on Year-to-DateSales Performance and Outlook

Concerningthe year-to-date sales performance and the outlook for the remainder of the currentfinancial year, the Chairman and Chief Executive, Dr. Patrick Shui-Chung Wang,said, "The current operating environment and performance trajectory of thebusiness presents a rather mixed picture. On the positive side, Johnson Electric continues to make pleasingprogress in winning new business and delivering innovative solutions that helpenable electrification, reduce emissions, improve fuel economy and achievehigher performance functionality for our customers' end products.Counterbalancing this, overall market demand has slowed in recent months andthe macro-economic outlook heading into 2019 is highly uncertain. Both of ouroperating divisions continue to target a modest rate of sales growth for thefull year, but this will be subject to a number of new product launchesscheduled for the fourth quarter remaining on schedule and to there not being afurther deterioration in global economic conditions and consumer confidence."

 

Cautionary Statement

Shareholdersand potential investors in the Company are reminded that the informationprovided in this news release, including information related to the expectedoutlook for the full year, is based on the Group's unaudited internal recordsand management accounts. This information has not been reviewed or audited bythe Company's auditors.

 

Shareholdersand potential investors should exercise caution when dealing or investing inthe shares of the Company.

 

About Johnson ElectricGroup

The Johnson Electric Group is aglobal leader in electric motors, actuators, motion subsystems and relatedelectro-mechanical components. It serves a broad range of industries includingAutomotive, Smart Metering, Medical Devices, Business Equipment, HomeAutomation, Ventilation, White Goods, Power Tools, and Lawn & GardenEquipment. The Group is headquartered in Hong Kong and employs over 40,000individuals in more than 20 countries worldwide.  Johnson Electric Holdings Limited is listedon The Stock Exchange of Hong Kong Limited (Stock Code: 179). For furtherinformation, please visit: www.johnsonelectric.com.


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