Hella has posted half-year external auto sales up 0.6% to EUR2.41bn (US$2.6bn), compared to the previous year of EUR2.39bn.
"Major contributions have come particularly from operational improvements in our Eastern European plants," said Hella CEO, Rolf Breidenbach. "Sales in the first half have been driven mainly by our aftermarket segment.
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"Our automotive business reported rather modest growth in the first half ahead of upcoming new production ramp-ups. In view of these new projects, we however expect the segment will pick up growth momentum again."
External sales in the first half of fiscal year 2016/2017, grew 0.6% to EUR2.41bn in the automotive segment (previous year: EUR2.39bn). The modest growth of sales compared to the prior-year period is to be seen in the context of new production ramp-ups in the segment, insists Hella.
Sales growth is mainly attributable to a high demand for electronics solutions, such as products for energy management, as well as to a positive business performance in the Chinese and NAFTA markets. The profitability of the segment increased significantly during the first half:
Compared to the adjusted EBIT of the previous year, EBIT rose by 11.2% to EUR227m, which corresponds to a margin of 9.4% (previous year: adjusted 8.5%).
Unadjusted for special effects in the previous year, earnings before interest and taxes in the automotive segment increased by 44.5%, which translates into an increase in the EBIT margin to 9.4% (previous year: 6.5%).
