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LIPPSTADT (dpa-AFX) – The lighting and electronics specialist Hella (HELLA GmbHCo) remains cautious for the current financial year after a significant drop in sales and earnings. The company anticipates consolidated sales of around EUR 5.6 billion to EUR 6.1 billion for the 2020/21 financial year (until the end of May), the MDax Group announced on Tuesday in Lippstadt upon presentation of preliminary full-year figures. The profit margin before interest and taxes (EBIT margin) adjusted for restructuring measures, portfolio effects and unscheduled impairments is expected to be around 4.0 percent to 6.0 percent.
This forecast takes place against the background of the continuing high level of market uncertainty and the reduced worldwide vehicle production, it said. The prospective range for sales and margin is at the upper end of the market expectations, but the annual targets were initially not well received on the stock market. The stock lost 6.8 percent in early trading.
In the past financial year 2019/20, the revenues declined by around 14 percent to 5.8 billion euros due to the effects of the Corona Pamdemie according to preliminary calculations. Adjusted operating profit (adjusted EBIT) was around 60 percent below the previous year’s figure at EUR 233 million. The adjusted EBIT margin was 4.0 percent after 8.4 percent in the previous year. The company plans to cut around 900 jobs by the end of 2023 due to the corona crisis and auto doldrums in Lippstadt. Hella will publish its full balance sheet on August 14th / mne / wed