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HELLA GmbH Annual Earnings Fall

HELLA GmbH & Co. KgaA (HLKHF), a German automotive part supplier, on Thursday posted a decline in earnings for the fiscal 2021-22, reflecting lower sales.

The fall in profitability is primarily impacted by component shortages, a rise in the prices of energy and raw materials, and significant capital expenditure on research and development as a result of the high order backlog.

The Lippstadt-based firm posted earnings of 184 million euros or 1.63 euros per share for the fiscal, compared with 360 million euros or 3.22 euros per share last year.

EBIT was at 278 million euros, less than 454 million euros, posted for the 12-month period ended in May 2021.

Excluding items, EBIT moved down to 279 million euros, from last year's 510 million euros.

HELLA recorded its reported sales at 6.32 billion euros as against 6.38 billion euros, posted for the fiscal 2020-21.

For the fiscal 2021-22, the German firm intends to propose a dividend of 0.49 euro per share, less than last year's dividend of 0.96 euro per share.

Looking ahead, for the fiscal 2022-23, HELLA expects sales to be in the range of 7.1 billion to 7.6 billion euros.

For the full-year, the EBIT margin adjusted for structural measures and portfolio effects is forecast to be in the range of around 5.5 percent to 7 percent.

Michel Favre, CEO of HELLA, said: "…For the coming twelve months, we expect global automotive production to reach 80 to 84 million vehicles. Based on this expected increase in volume as well as further cost optimizations, we will at the same time increase our profitability step by step. Significant synergies that HELLA will realize with Faurecia under the FORVIA umbrella brand will also contribute to this."

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