BERLIN (dpa-AFX) - German automotive parts supplier HELLA GmbH & Co. KGaA (HLKHF), called FORVIA HELLA, reported that its operating income for the first nine months of the fiscal year 2024 declined to 344 million euros from the previous year's 363 million euros.
'We expect both the fourth quarter of 2024 as well as the year 2025 to remain volatile and challenging for the automotive industry as a whole, and that a profound market recovery is not expected for the time being,' said CEO Bernard Schaferbarthold.
The company confirmed its outlook for fiscal year 2024, following the recent lowering of its annual guidance.
Adjusted for currency effects, sales for the first nine months of the fiscal year 2024 improved slightly by 0.8 percent to 6.0 billion euros, while reported sales are at a level 5.9 billion euros and on a par with the prior year.
In the reporting period, FORVIA HELLA thus performed significantly better than global light vehicle production, which declined by 1.6 percent overall in the first nine months of 2024.
The company said in September 2024 that it cut its fiscal year 2024 outlook due to lower-than-expected production volumes, customer-related postponements of series launches, and effects from customer and product mix. The company expects annual currency and portfolio-adjusted sales to be in the range of around 7.9 billion euros to 8.1 billion euros, compared to the previous estimate of the lower half of the range of about 8.1 billion euros to 8.6 billion euros. The company projects an operating income margin for fiscal year 2024 to be between around 5.5% and 6.0%, compared to the previous outlook of the lower half of the range of approximately 6.0% to 7.0%. The company anticipates a net cash flow in relation to reported sales for the year to be between around 2.2 and 2.7 percent compared to the earlier estimation of at approximately 3 percent.
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