FORVIA HELLA H1 Operating Income Rises; Now Sees FY24 Margin, Sales At Lower Half Of Estimate Range

(RTTNews) - German automotive parts supplier HELLA GmbH & Co. KGaA (HLKHF), called FORVIA HELLA, reported Tuesday that its first-half operating income grew 1.4 percent to 248 million euros from last year's 245 million euros.

Operating income margin rose slightly to 6.2 percent from previous year's 6.1 percent.

Sales for the period edged up 0.9 percent to 4.03 billion euros from 4 billion euros a year ago. Currency-adjusted sales were 4.06 billion euros, a growth of 1.6 percent from last year.

Global vehicle production on the other side stagnated in the first six months, it said.

Looking ahead for sfiscal 2024, FORVIA HELLA continues to expect to generate currency and portfolio-adjusted Group sales of between around 8.1 billion euros and 8.6 billion euros. The operating income margin is still forecasted to be between around 6.0 and 7.0 percent.

Both adjusted sales and the operating income margin are now expected to be in the lower half of the given forecast range.

CEO Bernard Schaferbarthold said, "Market conditions will remain challenging. On the one hand, we see that global production volumes will develop worse in the second half of the year than assumed only a few months ago. On the other hand, we expect impacts from our customer mix, particularly in China, as well as slower-than-anticipated series launches for individual customer programs to continue in the second half of the year. In the context of this difficult industry environment, we are confirming our company outlook, but specifying it within the given ranges."

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