In a difficult market environment, based on preliminary figures, Hella generated lower currency and portfolio-adjusted sales in FY19-20 (June 2019 to May 2020) than in FY18-19: €5.8bn (versus €6.8bn) and the same with adjusted EBIT margin (4% vs 8.4%).
CEO Dr. Rolf Breiden bach says “We have further accelerated our already ongoing cost programmes. As of March, we have introduced additional temporary measures such as short-time work and an even stricter cost control program. This enabled us to cushion the hard market decline caused by Corona, but, as foreseeable, only partially compensates for the associated losses”.For FY20-21, Hella expect currency and portfolio-adjusted sales of around €5.6bn to €6.1bn and an EBIT margin of around 4% to 6%, adjusted for restructuring measures, portfolio effects and extraordinary impairments. Breidenbach: “There is still a high degree of uncertainty as to how vehicle production will develop in the future. Due to the significantly reduced market volumes and the high investment requirements in the industry, competitive intensity and cost pressure will continue to increase”.
Hella’s management have decided on a long-term program to increase competitiveness. This includes further increased investments in automotive market trends, automation and software expertise. Further structural adjustments are being considered as well in Hella’s worldwide location network. In this context it is planned to trim around 900 administrative and development positions at the company’s headquarters in Lippstadt. The necessary personnel adjustments are to be made in the mid term up to the end of 2023 and implemented in the most socially acceptable way possible. The Lippstadt headquarters will continue to be continuously developed in its function as a global control centre and high-tech location.