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HELLA Revises Guidance For Current Fiscal As Q2 Sales Decline

HELLA GmbH & Co. KGaA (HLKHF), a German automotive part supplier, said in a preliminary report on Monday that it posted a decline in sales for the second quarter, mainly due to ongoing supply bottlenecks for semiconductors and other components.

Owing to a less than expected recovery in the market during the six-month period to November and increasing cost burdens, the automobile firm has revised down its sales guidance for the current fiscal.

According to the preliminary figures released, currency and portfolio-adjusted sales for the quarter slid by around 13 percent to approximately 1.5 billion euros, compared with 1.8 billion euros, reported a year ago.

Amidst rising materials and logistics costs, and increased manufacturing inefficiencies due to the tight market conditions, the adjusted earnings before interest and taxes (EBIT) margin also fell to around 4 percent for the period, compared with 12.1 percent, reported for the same thirteen-week period of previous year.

For the current fiscal, which is scheduled to end in May 2022, HELLA now expects currency and portfolio-adjusted sales to be in the range of approximately 5.9 billion - 6.2 billion euros, against its previous estimated range of approximately 6.0 billion - 6.5 billion euros.

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