In the first nine months of the current fiscal year 2019-20 (June 2019–February 2020), Hella’s sales and earnings have developed in line with expectations despite the outbreak of the coronavirus. On a provisional basis, currency and portfolio-adjusted sales decreased by 3.7% to € 4.8bn with an adjusted EBIT margin at 7.2% vs 8.2%.
The COVID-19 pandemic and the global reactions to it—particularly increasing production shutdowns by customers, disruptions of global logistics chains, and anticipated intensified decline in demand—have significant effects on the global automotive industry, including the demand for automotive lighting and electronics solutions from Hella. Consequently, already at the end of 3Q19, Hella were confronted with a significant decrease in customer demand. As a reaction, in addition to the existing cost control program, the company have adopted comprehensive measures to reduce staff and material costs. Furthermore, short-time work on domestic sites is under preparation. Management considers further measures which can include short-time work at other locations and the temporary shutdown of the company’s own production facilities.
Given the reduction in customer demand and the interruption of logistics chains, Hella are now anticipating currency and portfolio adjusted sales to be below the originally forecasted range of €6.5bn to €7bn. Detailed nine-month results for the current fiscal year will be published as planned on 2 April.