HELLA Continues Strong Growth Pace In Fiscal Year 2011-2012
LIPPSTADT, Germany, July 17, 2012 /PRNewswire/ -- HELLA KGaA & Co., one of the world's leading automotive suppliers, concluded its best-ever fiscal year based on preliminary results for the period ending on May 31, 2012.
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HELLA posted record fiscal-year sales of 4.8 billion euro during the period, nine percent higher than the previous record set a year earlier. The company's preliminary earnings before interest and taxes (EBIT) totaled 341 million euro up from 268 million euro in fiscal-year 2010-2011.
A technology leader among suppliers of lighting and electronics, HELLA has been able to profit from the continuing high demand for premium-class vehicles in growth markets throughout the world.
"We were able to identify important trends in the automotive industry early on and have developed tailor-made products in the fields of energy management, safety and LED technology," says Dr. Jurgen Behrend, managing and personally liable partner at HELLA. "We are profiting from that today."
The company has been economically successful in all of the regions and business segments in which it competes. HELLA's automotive business segment with its core entities of lighting and electronics, and its aftermarket, off-highway and special-applications businesses, all have contributed to positive fiscal-year turnover and profit trends.
Earnings before interest, taxes, depreciation and amortization (EBITDA) grew from 565 million euro in the previous fiscal year to 613 million euro for the period ended on May 31, 2012. The group's annual results increased by 56 million euro to 220 million euro compared to the previous fiscal-year total of 164 million euro.
"The disproportionately high increase in results shows how well our global organization is able to perform," says CEO Dr. Rolf Breidenbach. "We will continue to expand upon these strengths."
Focus on international growth and technology leadership
During fiscal year 2011-2012, HELLA pushed international diversification and activities in global growth markets. "Through our international presence we can boost relations to globally active manufacturers and capitalize on growth opportunities worldwide," Dr. Rolf Breidenbach says, noting that today, HELLA generates more than 40 percent of its turnover outside of Europe and has the ability to compensate for regional market fluctuations.
From a geographic perspective, HELLA continues to see the greatest opportunities in growth markets such as China and North America, as well as in India and Brazil. In these future markets, HELLA as a partner to auto makers around the world will continue to strengthen its already strong position among the international competition over the long term by creating additional production and development capacities and expanding local supplier bases.
Simultaneously, HELLA plans to continue its innovation-based growth in the established business fields of lighting and electronics. Further growth potential also will be exploited through technology transfer to new applications beyond HELLA's core automotive business.
"As a family business, we want to continue rapid, but sensible growth," says Dr. Jurgen Behrend. "As I see it, we are well-positioned to do so in all business fields. Particularly our innovative product portfolio and our international presence provide us with an excellent basis for making good use of the arising opportunities and for successfully tackling any economic risks that may emerge."
Business Development in Detail:
High increases in original-equipment business
HELLA's automotive segment has been able to profit greatly from the increase in sales within the automobile industry. Consolidated turnover increased from 3.2 billion euro to 3.5 billion euro, with earnings before interest and taxes of 250 million euro. The strategic focus now lies on continuing the expansion of the global development and production network in order to meet high local demand at a regional level.
"We grow where our customers grow," Dr. Jurgen Behrend says. "This clear customer orientation is being rewarded. We will continue to pursue this approach."
LED technology and new partnerships strengthen aftermarket
HELLA's aftermarket business also recorded strong growth, especially in growth markets such as Eastern Europe, Asia and North America. Consolidated sales increased to roughly 1.0 billion euro. EBIT increased to approximately 76 million euro.
Besides continuing growth in the field of vehicle lighting, the positive sales trend was marked by the extension of HELLA's product portfolio through partnerships with other suppliers. HELLA utilizes a global sales network to organize the motor-vehicle parts trade, which acts as a service partner for independent garages and supplies the replacement-parts organizations of major automobile manufacturers.
Special applications display high potential for the future
In fiscal year 2011-2012, HELLA used technology and processes from the fields of automotive lighting and electronics to establish itself in new areas of growth such as street lighting, airport lighting and people counters. HELLA has merged this business with its special OE business. In its last fiscal year, HELLA generated consolidated turnover of 313 million euro and achieved operating profits of 21 million euro.
Investments in research and development
Development and marketing of innovative products remains the most significant growth driver for HELLA. Presently, its global research and development network employs more than 4,800 people. In order to maintain its technology leadership, HELLA invested a total of 428 million euro in research and development in the last fiscal year, nearly nine percent of the group's total turnover.
"Top quality and innovative solutions represent the basis of our long-term success," says Dr. Jurgen Behrend. "These two factors for success thus naturally take top priority for us."
Solid financing further strengthened
For HELLA, the operational success of fiscal year 2011-2012 presented an opportunity to further optimize the company's solid, long-term-oriented financial structure. HELLA's equity ratio has been increased from 32 to 33 percent. At the close of its current fiscal year on May 31, equity capital totaled 1,081 million euro. Liquid assets have increased by roughly 46 percent to 432 million euro. At the same time, net financial liabilities were cut by about 28 percent to 295 million euro and amounted to 0.5 of the EBITDA.
Outlook: HELLA will continue to grow
At present, HELLA is observing stable global demand and heterogeneous regional market development. HELLA thus expects a further increase in turnover and a positive trend regarding profits for the fiscal year 2012-2013.
"We have put together a top-performance product and customer portfolio," Dr. Jurgen Behrend says. "It is this solid base upon which we will continue to pursue our long-term growth."
SOURCE HELLA
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