HONG KONG, CHINA--(Marketwired - Jul 13, 2016) - This news release is made by Johnson Electric Holdings Limited ("Johnson Electric" or the "Company") (HKSE: 179) for the business operations and selected unaudited financial information of the Company and its subsidiaries (the "Group") for the quarter ended 30 June 2016.
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 quarter ended 30 June 2016 were US$686 million compared to US$526 million in the same quarter in 2015 -- an increase of 30%.
Excluding currency effects and acquisitions, sales increased by 4% to US$547 million. The acquisitions of Stackpole International and AML Systems together added US$144 million to the Group's sales. Stackpole's sales for the quarter were US$126 million and AML's sales contribution since its acquisition on 18 May 2016 were US$18 million. Foreign exchange rate movements, particularly the depreciation of the Chinese Renminbi against the US Dollar, had an adverse impact of US$5 million on the Group's sales during the quarter.
Automotive Products Group ("APG")
Sales, excluding currency effects and the acquisitions of Stackpole and AML, increased US$19 million compared to the same period last year, as shown by region below:
- Asia increased 6%
- Europe increased 5%
- Americas increased 3%
- Total, excluding effect of acquisitions, increased 5%
APG's organic sales growth was largely driven by an increase in demand for products for powertrain cooling, engine air management, braking and engine coolant valve applications. This was slightly offset by lower sales of products for engine fuel management applications.
Including Stackpole and AML but excluding currency effects, APG's sales increased by 44%.
Industry Products Group ("IPG")
Sales, excluding currency effects, increased US$2 million compared to the same quarter last year, as shown by region below:
- Asia decreased 6%
- Europe increased 16%
- Americas decreased 3%
- Total increased 2%
IPG's sales growth was largely driven by increased demand for products for lawn and garden and metering applications in Europe. This was partially offset by declines in certain market segments in the Americas and Asia.
Chairman's Comments on First Quarter's Sales Performance and Outlook
Concerning the first quarter's sales performance and outlook for the current financial year, the Chairman and Chief Executive, Dr. Patrick Shui-Chung Wang, said, "In the context of a sluggish global economy, Johnson Electric delivered a very solid sales performance in the first quarter of the 2016/17 financial year. The recently acquired Stackpole and AML businesses are performing as expected and we are excited by the new set of business opportunities that the combination with Johnson Electric has enabled."
Dr. Wang further commented: "Notwithstanding the solid start we have made to the current financial year, the global operating environment appears set for a protracted period of weak economic growth and an increased risk of deflation. Consequently, management is focused on containing and reducing costs including headcount, to ensure that the Group is in the right shape to navigate through what may prove to be particularly challenging and volatile market conditions."
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 the global leader in electric motors and motion subsystems. It serves a broad range of industries including automotive, building automation and security, business machines, food and beverage equipment, home technologies, HVAC, industrial equipment, medical devices, personal care, power equipment and power tools. The Group is headquartered in Hong Kong and the total global headcount stands at 38,000 individuals located in Asia, the Americas and Europe. Innovation and product design centres are located in Hong Kong, China, Canada, Switzerland, Germany, Italy, Israel, Japan, the UK and the USA. Johnson Electric Holdings Limited is listed on The Stock Exchange of Hong Kong Limited (HKSE: 179). For further information, please visit: www.johnsonelectric.com.