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HELLA Q2 EBIT Margin, Adj. Sales Rise; H1 EBIT, Margin Down - Quick Facts

German automotive parts supplier HELLA GmbH & Co. KGaA (HLKHF)reported Thursday that its second-quarter was particularly strong, with reported earnings before interest and tax or EBIT margin of 11.9 percent, up from previous year's 6.8 percent. Adjusted EBIT margin was 12.1 percent, up from prior year's 8.3 percent.

Following a slight market recovery, adjusted consolidated sales for the quarter increased 4.7 percent.

For the first half, EBIT was 94 million euros, down from prior year's 230 million euros. Reported EBIT margin was 3.0 percent, lower than 7 percent a year ago.

Adjusted EBIT for the first half was 269 million euros, compared to prior year's 253 million euros, benefited by better sales development and the ongoing strict cost discipline. Adjusted EBIT margin was 8.7 percent, up from 7.8 percent last year.

First-half sales fell 6.4 percent to 3.10 billion euros from 3.31 billion euros last year.

Currency and portfolio-adjusted consolidated sales decreased 2.5 percent in the first half to 3.2 billion euros.

Regarding the outlook, the company said its fiscal 2021 guidance has already been raised in December despite continuing market uncertainties.

The company continues to expect currency and portfolio-adjusted sales in the range from around 6.1 billion euros to 6.6 billion euros, and an adjusted EBIT margin in the range from around 6.0 percent to 8.0 percent.

HELLA CEO Rolf Breidenbach said, "Even if the conditions for business remain challenging, not least due to the Covid-19 pandemic, the market environment has brightened somewhat over the last few months. ...We are currently benefiting not only from our timely and consistent cost management measures but also from our strategic positioning in line with the major market trends such as electromobility, autonomous driving and digital light."

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