Q3 2024 Hella GmbH & Co KgaA Earnings Call Transcript
Key Points
- HELLA GmbH & Co KGaA (HLKHF) confirmed its outlook for the end of the year, indicating confidence in its strategic direction.
- The company reported a solid profitability despite a challenging and volatile market environment.
- Sales in the lighting segment grew by 4.3%, reaching EUR 2.95 billion, showcasing strong performance in this area.
- HELLA GmbH & Co KGaA is successfully expanding its global footprint, with two-thirds of its order intake coming from outside Europe.
- The company is making significant progress in cost reduction and operational excellence, expecting to achieve EUR 400 million in cost synergies by the end of next year.
- Overall sales growth was modest at 0.8%, with total sales reaching EUR 6 billion after nine months.
- The electronics segment experienced a negative growth of 3.2%, largely due to delayed SOPs and a downturn in electrification.
- The life cycle segment saw a decline, particularly in the third quarter, with a significant drop in the SOE business by 20%.
- The income margin decreased to 5.8% from 6.1% in the prior year, impacted by lower volumes and negative mix effects.
- Net cash flow remained slightly negative, with expectations to improve by the end of the year.
A very warm welcome and good morning from my side. I am here with Philip, our CFO and very warm welcome joining that call on our nine-month result.
First of all, I would like to highlight three things. One is in terms of our new outlook, we confirm our outlook to the end of the year.
Secondly, we will present on the nine month result as expected the third quarter and also we expect a continuous volatile environment in the fourth quarter was a challenging one.
And despite that, we maneuverer with a quite solid profitability. And the third is that I will highlight that in our view, we are well on track in terms of the implementation of our strategy and the structural changes, we already have commented to increase our competitiveness, but let's start into the results.
So overall sales grew at 0.8%. So, we are at EUR 6 billion after the nine months. This is an outperformance of 240 basis points. The group reported sales are at EUR 5.9
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
