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HELLA HY Adj. EBIT Rises

HELLA GmbH & Co. KGaA (HLKHF), an automotive supplier of lighting and electronics, reported that its adjusted earnings before interest and taxes or adjusted EBIT for the first six months of the fiscal year 2018/2019 increased by 5.5 percent to 302 million euros from the prior year's 286 million euros.

Particularly in light of the divestment of the wholesale distribution business, the reported earnings before interest and taxes (EBIT) increased significantly to 537 million euros from 290 million euros last year.

The currency- and portfolio-adjusted consolidated sales rose by 7.3 percent. Taking into account exchange rate effects and the divestment of the wholesale distribution business, the reported sales increased by 2.8 percent to 3.6 billion euros from the previous year's 3.5 billion euros.

From the current perspective, the HELLA Group continues to anticipate positive business development for the current fiscal year 2018/2019 and confirmed its current company outlook.

"However, we assume that the market environment will continue to weaken in the months to come. This is primarily due to the significant decline in demand from the Chinese automotive market, volatility in conjunction with the new WLTP emission testing method, and uncertainty in the overall economic environment," said HELLA CEO Dr. Rolf Breidenbach.

Assuming that the automotive market will not suffer any additional weakening in the second half of the fiscal year, HELLA is currently expecting that the currency- and portfolio-adjusted sales growth will be at the lower end and the increase in earnings before interest and taxes adjusted by restructuring measures and portfolio effects (adjusted EBIT) will be in the lower half of the given forecast range from 5 to 10
percent.

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