HONG KONG,
CHINA – Media OutReach – 15 January 2020 – This news release is made by Johnson
Electric Holdings Limited (“Johnson Electric” or the “Company”) for the
business operations and selected unaudited financial information of the Company
and its subsidiaries (the “Group”) for the nine months ended 31 December 2019.
The Board of Directors of
the Company considers the publication of quarterly performance updates to be
consistent with international corporate disclosure best practice. The objective
of this news release is to provide transparency and to ensure that investors
and potential investors receive equal access to the same information at the
same time.
The Group’s sales for the
nine months ended 31 December 2019 were US$2,338 million compared to US$2,436
million for the same period in 2018; a decrease of 4%. Excluding currency
movements, sales decreased by 2% to US$2,390 million.
Foreign exchange rate
movements had a negative effect of US$52 million on the Group’s sales during
the period. This was mainly due to the decline of the Euro and Chinese Renminbi
versus the US Dollar, comparing average exchange rates for the nine months
ended 31 December 2019 to the same period last year.
Automotive Products Group (“APG”)
APG’s sales for the
nine-month period, as reported, decreased by US$27 million or 1%.
Excluding currency
movements, APG’s sales increased by 1%, an outperformance compared to the 6%
decline in global light vehicle production volumes in the same period. Sales changes by region in constant currency
terms were as follows:
- Asia decreased 3%
- Europe was flat
- Americas increased 8%
APG’s sales outperformance
compared to automotive industry production volumes was due to new product
launches and production increases including thermal management and braking
applications. The division’s innovative technology and product portfolio
remains well positioned to meet growing demand for the electrification of
critical automotive functions to increase powertrain efficiency, reduce vehicle
weight and improve safety, reliability and comfort.
Industry Products Group
(“IPG”)
IPG’s sales for the
nine-month period, as reported, decreased by US$72 million or 13%.
Excluding currency effects,
sales decreased by 12% compared to the same period last year. Sales changes by
region in constant currency terms were:
- Asia decreased 13%
- Europe decreased 13%
- Americas
decreased 10%
IPG’s sales decreased in all
regions reflecting lower demand and increased competitive pressure in many
end-market segments. Furthermore, with the market downturn, customers are reducing
inventory levels. These impacts were especially noticeable in the China export
market as well as the floor-care, white goods, and lawn and garden segments.
Chairman’s Comments on Year-to-Date
Sales Performance and Outlook
Concerning the year-to-date
sales performance and the outlook for the remainder of the current financial
year, the Chairman and Chief Executive, Dr. Patrick Shui-Chung Wang, said,
“Johnson Electric’s overall sales trajectory continues to improve despite
recessionary conditions in several industrial manufacturing markets in which
the Group operates. Our Automotive components division is achieving organic
sales growth substantially above the global industry average and, based on
current trends, we reaffirm our previous guidance that total Group sales for
the second half of the financial year is expected to exceed that of the first
half. As a result, excluding currency
movements, full year total sales will likely be only slightly below that of the
prior year.”
Cautionary
Statement
Shareholders and potential
investors in the Company are reminded that the information provided in this news
release, including information related to the expected outlook for the full
year, is based on the Group’s unaudited internal records and management
accounts. This information has not been reviewed or audited by the Company’s
auditors.
Shareholders
and potential investors should exercise caution when dealing or investing in
the shares of the Company.
About Johnson Electric Group
The
Johnson Electric Group is a global leader in electric motors, actuators, motion
subsystems and related electro-mechanical components. It serves a broad range
of industries including Automotive, Smart Metering, Medical Devices, Business
Equipment, Home Automation, Ventilation, White Goods, Power Tools, and Lawn
& Garden Equipment. The Group is headquartered in Hong Kong and employs
over 36,000 individuals in more than 23 countries worldwide. Johnson Electric
Holdings Limited is listed on The Stock Exchange of Hong Kong Limited (Stock
Code: 179). For further information, please visit: www.johnsonelectric.com.
