SOURCE: Johnson Electric Holdings Limited

Johnson Electric Holdings Limited

January 15, 2015 04:55 ET

Johnson Electric Reports Business and Unaudited Financial Information for the Third Quarter of Financial Year 2014/15

HONG KONG, CHINA--(Marketwired - Jan 15, 2015) - This news release is made by Johnson Electric Holdings Limited (HKSE: 179) ("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 2014.

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 2014 were US$1,588 million, an increase of US$51 million from the same period last year. Sales, excluding currency effects, increased by US$63 million (4.1%) compared to the same period last year.

The underlying changes in sales, excluding currency effects, compared to the same period last year were as follows:

  • By Business:
    • Automotive Products Group ("APG") increased by 5.1% 
    • Industry Products Group ("IPG") increased by 2.0%

  • By Region:
    • Asia increased by 4.8% 
    • Europe increased by 5.8% 
    • Americas declined by 0.1%

Automotive Products Group: Excluding currency effects, APG's sales for the nine months ended 31 December 2014 increased by US$53 million (5.1%) compared to the same period last year. This sales growth was largely driven by increased demand for our products for powertrain cooling, engine air management, chassis and transmission, electric power steering, sunroof and window-lift applications. This was partially offset by lower sales in the Americas of products for heating, ventilation and air-conditioning and seat adjuster applications.

Industry Products Group: Excluding currency effects, IPG's sales for the nine months ended 31 December 2014 increased by US$10 million (2.0%) compared to the same period last year. IPG's ability to deliver unique technology solutions drove growth in sales of products for medical, floor care, metering, point-of-sale, and lawn and garden applications. This was partially offset by reduced sales of products for food and beverage, power tools and business machine applications.

Concerning the outlook for the current financial year, the Chairman and Chief Executive, Dr. Patrick Shui-Chung Wang, said, "Johnson Electric has made solid progress in the 2014/15 financial year in what remains a mixed and uncertain macro-economic environment. The Company is investing aggressively to strengthen its global operating footprint with a number of new facilities in various stages of construction, start-up and expansion. As previously announced, the start-up costs of these longer term growth initiatives, combined with foreign exchange rate volatility and the recurring headwind of rising labour costs in China, mean that operating margins and net profits for the 2014/15 financial year are currently expected to be slightly lower than the high levels achieved in 2013/14."

Dr. Wang further commented, "Johnson Electric's financial condition and book of new business is strong. This was also reflected by Standard & Poor's Rating Services assigning the Company, in December 2014, the investment grade long-term credit rating of BBB with a stable outlook."

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 auditor.

Shareholders and potential investors should exercise caution when dealing or investing in the shares of the Company.

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About Johnson Electric Group
The Johnson Electric Group is a global leader in 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 stood at 35,000 individuals located in Asia, the Americas and Europe. Innovation and product design centres are located in Hong Kong, China, 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.

Contact Information

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