|By Marketwired .||
|January 15, 2014 05:14 AM EST||
HONG KONG, CHINA -- (Marketwired) -- 01/15/14 -- This news release is made by Johnson Electric Holdings Limited ("Johnson Electric" or the "Company") (HKSE: 0179) for the business operations and selected unaudited financial information of the Company and its subsidiaries (the "Group") for the nine months ended 31 December 2013.
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 2013 were US$1,537 million, an increase of US$11 million from the same period last year. Sales, excluding nonrecurring items and currency effects, increased by US$30 million (2.1%) compared to the same period last year. Nonrecurring items in the nine months ended 31 December 2012 comprised the insourcing of a European distribution channel in April - May 2012 and the disposal of a noncore business (the Controls business) in February 2013. There were no nonrecurring items in the nine months ended 31 December 2013.
The underlying changes in sales, excluding nonrecurring items and currency effects, compared to the same period last year were as follows:
- By Business:
- Automotive Products Group ("APG") increased by 6.4%
- Industry Products Group ("IPG") declined by 6.0%
- By Region:
- Asia remained unchanged
- Europe increased by 4.5%
- Americas increased by 1.0%
APG provides custom engineering solutions including motors, actuators, switches and motion subsystems for all critical automotive motion related functions. Excluding nonrecurring items and currency effects, APG's sales for the nine months ended 31 December 2013 increased by US$62 million (6.4%) compared to the same period last year.
APG's sales growth was largely driven by increased demand for our powertrain cooling products across all regions. Sales in many product segments also benefited from launches of new platforms, especially sales of products for chassis and transmission, window-lift and engine fuel management applications. APG continues to invest in developing low-weight, high-power-density motors and subsystems for advanced applications that meet industry demands for increased fuel efficiency, reduced emissions and improved safety.
IPG provides motion products and customised subsystems for numerous industries and applications including business machines, security, home entertainment, food and beverage, home technologies, HVAC, industrial equipment, medical devices, personal care, power equipment and power tools. Excluding nonrecurring items and currency effects, IPG's sales for the nine months ended 31 December 2013 declined by US$31 million (6.0%) compared to the same period last year.
Products for applications in certain market segments such as food and beverage, security, power tools and home entertainment and gaming experienced weaker sales due to the continuation of lower demand and intense price competition experienced in recent years. This was partly offset by increased demand in certain product segments, most notably business machines. IPG's ability to deliver unique technology solutions also drove growth in sales of products for medical equipment and high-end domestic appliances. IPG's focus remains on specific products and customers, where our distinctive technology and solution capabilities allow us to generate attractive financial returns.
Concerning the outlook for the current financial year, the Chairman and Chief Executive, Dr. Patrick Shui-Chung Wang, said, "Johnson Electric is performing well in the current financial year given the relatively weak global economy that has yet to show clear and consistent signs of a sustained recovery. Overall, the Group remains on track to achieve an improved financial performance compared to last year."
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 motion subsystems, including motors, solenoids, switches, micro-switches, flexible printed circuits and microelectronics. It serves a broad range of industries including automotive, building automation and security, business machines, security and aerospace, 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 over 34,000 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 (Stock Code: 179). For further information, please visit: www.johnsonelectric.com