Johnson Electric reports Business and Unaudited Financial Information for the Third Quarter of Financial Year 2020/21

January, 14/2021 - 10:17
Johnson Electric reports Business and Unaudited Financial Information for the Third Quarter of Financial Year 2020/21

HONG KONG SAR - Media OutReach - 14 January 2021 -This news release is made by Johnson Electric Holdings Limited ("JohnsonElectric" or the "Company" and together with its subsidiaries, the "Group") forthe business operations and selected unaudited financial information of theGroup for the three months and the nine months ended 31 December 2020.

 

The Board of Directors (the"Board") of the Company considers the publication of quarterly sales performanceupdates to be consistent with international corporate disclosure best practice.The objective of this news release is to provide transparency and to ensurethat investors and potential investors receive equal access to the sameinformation at the same time.

 

The Group's sales for thequarter ended 31 December 2020 were US$912 million compared to US$773 millionfor the same quarter in 2019, an increase of 18%. Excluding currency movements,sales increased by 15% to US$887 million. Foreign exchange rate movements had apositive effect of US$25 million on the Group's sales for the quarter ended 31December 2020. This was mainly due to the impact of the stronger averageexchange rates for the Euro and Chinese Renminbi against the US Dollar,compared to the same quarter in 2019.

 

The recovery in salesexperienced in the second quarter gathered momentum in the third quarter,partially mitigating the deep pandemic-driven decline experienced in the firstquarter of the financial year. Overall, the Group recorded sales of US$2,242million for the nine months ended 31 December 2020, compared to US$2,338million for the same period in 2019, a decrease of 4%. Excluding currencymovements, sales for the nine months ended 31 December 2020 decreased by 5%.

 

Sales of AutomotiveProducts Group ("APG")

APG's sales for the quarterended 31 December 2020 increased by US$107 million or 17% compared to the samequarter in 2019.  Excluding currencyeffects, APG's sales increased by US$84 million or 13% in the quarter.

 

APG's sales outperformedcompared to automotive industry production volumes, in all regions, in both thenine months and the quarter ended 31 December 2020. Although the COVID-19pandemic sharply reduced APG's sales in April and May 2020, particularly inEurope and the Americas, the Group subsequently experienced a significantrecovery in demand. The sales changes by region, excluding currency effects,were as follows:

 

 

Quarter ended
31 December 2020

Nine months ended
31 December 2020

Asia

increased 16%

increased 6%

Europe

increased 7%

decreased 20%

Americas

increased 17%

decreased 13%

Total

increased 13%

decreased 8%

 

Johnson Electric'sinnovative technology and product portfolio remains well positioned to meetgrowing demand for the electrification of critical automotive functions toincrease powertrain efficiency, reduce vehicle weight, improve safety,reliability and enhance comfort.

 

Sales of IndustryProducts Group ("IPG")

IPG's sales for the quarterended 31 December 2020 increased by US$32 million or 21% compared to the samequarter in 2019. Excluding currency effects, IPG's sales increased by US$29million or 20% for the quarter.

 

IPG's business and financialperformance benefited significantly from changes in consumer behaviour andexpenditure in response to the COVID-19 pandemic. As consumers in manycountries were required to spend more time at home, the division experiencedstrong demand for products for food and beverage, floor care, home officeprinter, lawn and garden, window automation, power tool, sanitation andventilation applications. The medical segment also experienced strong growth,driven by the long-term imperative to reduce the labour intensity of hospitalprocedures.

 

These positive demanddynamics were partly offset by the COVID-19 pandemic's adverse impact on somespecific customers and market segments. In Europe and the Americas, sales tomany small and medium enterprises decreased as consumers switched to purchasingthrough the online sales channels of larger competitors. Commercial printers,metering, flexible printed products and switches segments were also slower thanusual.

 

On a regional basis, IPGexperienced the highest sales growth in Asia due in large part to the rapidrecovery of China's industrial sector and strong global demand for thecountry's manufactured goods. In Europe and the Americas, the path to recoveryin some segments has taken somewhat longer and in the US, in particular, IPG'ssales have been hampered by delays from port congestion as well as land andrail logistical bottlenecks. The sales changes by region, excluding currencyeffects, were as follows:

 

 

Quarter ended
31 December 2020

Nine months ended
31 December 2020

Asia

increased 35%

increased 18%

Europe

increased 22%

increased 6%

Americas

flat

decreased 3%

Total

increased 20%

increased 8%

 

Chairman's Comments on SalesPerformance and Outlook

Concerning the quarter ended31 December 2020 sales performance, the Chairman and Chief Executive, Dr.Patrick Shui-Chung Wang, said, "The strong recovery in demand that weexperienced during the second quarter continued in the third quarter -- withsales levels in both APG and IPG running well ahead of the third quarter in theprior year.  Although there remains someuncertainty as to how the upsurge in COVID-19 in many Western countries couldimpact business activity and consumer confidence, the Group is presently on trackto deliver full-year total sales close to the level achieved in the priorfinancial year.  This would represent avery satisfactory achievement given the fact that such a large portion ofJohnson Electric's operations was either shutdown or significantly constrainedduring the first two months of the current financial year."

 

CautionaryStatement

Shareholders and potentialinvestors in the Company are reminded that the information provided in this newsrelease, including information related to the expected outlook for the fullyear, 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.

 

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

About Johnson Electric Group

TheJohnson Electric Group is a global leader in electric motors, actuators, motionsubsystems and related electro-mechanical components. It serves a broad rangeof industries including Automotive, Smart Metering, Medical Devices, BusinessEquipment, Home Automation, Ventilation, White Goods, Power Tools, and Lawn& Garden Equipment. The Group is headquartered in Hong Kong and employs over35,000 individuals in 23 countries worldwide. Johnson Electric Holdings Limitedis listed on The Stock Exchange of Hong Kong Limited (Stock Code: 179). Forfurther information, please visit: www.johnsonelectric.com.

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