Johnson Electric reports Business and Unaudited Financial Information for the Third Quarter of Financial Year 24/25
HONG KONG SAR - Media OutReach Newswire - 15 January 2025 - This news release is made by Johnson Electric Holdings Limited ("Johnson Electric" or the "Company" and together with its subsidiaries, the "Group") for the business operations and selected unaudited financial information of the Group for the nine months ended 31 December 2024.
The Group's sales for the nine months ended 31 December 2024 were US$2,730 million compared to US$2,871 million for the same period in the previous financial year, a decrease of 5%. Exchange rate movements had an unfavourable impact of US$11 million on the Group's sales during the period.
Sales of Automotive Products Group ("APG")
APG's sales for the nine months ended 31 December 2024 were US$2,314 million, a decrease of US$108 million compared to the same period in financial year 23/24. Excluding currency effects, APG's sales decreased by US$97 million or 4%.
The division's sales changes by region, excluding currency effects, were as follows:
| | Nine months ended 31 December 2024 | |
| Asia-Pacific | 2% | Decrease |
| Europe, Middle East and Africa | 5% | Decrease |
| Americas | 5% | Decrease |
| Total | 4% | Decrease |
In Asia-Pacific, sales decreased by 2% while light vehicle production in the region declined by 1%. The drop in light vehicle production, coupled with a less favourable customer mix, led to lower sales of products for closure and braking, and powder metal components. However, this was largely offset by increased sales of oil pumps and products for steering. In Europe, the Middle East and Africa ("EMEA"), sales decreased by 5% compared to a 7% decline in light vehicle production in the region. Sales of oil pumps and products for vision, thermal management and steering decreased, reflecting the drop in light vehicle production. This decline was partially offset by increased sales of products for seats and transmissions. In the Americas, sales decreased by 5% while light vehicle production declined by 1%. Sales of products for thermal management and seat applications as well as powder metal components decreased due to weak demand from certain customers, and some programs reaching end of life. This decline was partially offset by increased sales of products for steering, transmission and closure applications.
Sales of Industry Products Group ("IPG")
IPG's sales for the nine months ended 31 December 2024 were US$416 million, a decrease of US$33 million or 7% compared to the same period in the previous financial year. Currency effects were negligible.
IPG's end markets remained weak as the business continued to face headwinds driven by consumer caution in discretionary spending and a growing preference for affordable options from value-oriented brands. This shift has increased price competition in certain IPG product segments, where commoditization has led to cost taking precedence over functionality and reliability in purchasing decisions.
The sales changes for IPG by region, excluding currency effects, were as follows:
| | Nine months ended 31 December 2024 | |
| Asia-Pacific | 9% | Increase |
| Europe, Middle East and Africa | 12% | Decrease |
| Americas | 15% | Decrease |
| Total | 7% | Decrease |
In the Asia-Pacific region, sales increased mainly because key customers placed replenishment orders after the depletion of prior inventory surpluses, as well as due to some new business wins. However, this growth was more than offset by a decline in sales in the EMEA and Americas regions, attributed to the previously noted soft end market demand.
Chairman's Comments on Sales Performance and Outlook
Commenting on the Group's sales performance and near-term outlook, Dr. Patrick Shui-Chung Wang, Chairman and Chief Executive, said: "Johnson Electric's sales for the financial year to date have been negatively impacted by lacklustre global light vehicle production volumes and soft consumer demand and price competition in several other manufactured product segments. There is an exceptionally high level of uncertainty concerning the macroeconomic environment that is weighing on consumer sentiment and has led to several customers deferring plans for new product launches.
"Looking ahead, the fourth-quarter sales trajectory remains influenced by the macroeconomic challenges experienced in the previous quarters of the year, compounded by the effects of the Chinese Lunar New Year holidays. Consequently, we presently anticipate Group sales for the full year to be a mid-single-digit percentage lower than the level achieved in the prior year."
Dr. Wang added: "In view of the uncertainty concerning the prospects for global trade and investment in the year ahead, management is focused on tight cost control and maintaining the Group's conservative balance sheet profile."
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 auditors.
Shareholders and potential investors should exercise caution when dealing or investing in the shares of the Company.
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The issuer is solely responsible for the content of this announcement.
About Johnson Electric Group
The Johnson Electric Group is a global leader in electric motors, actuators, motion subsystems and related electro-mechanical components. It serves a broad range of industries including Automotive, Smart Metering, Medical Devices, Business Equipment, Home Automation, Ventilation, White Goods, Power Tools, and Lawn & Garden Equipment. The Group is headquartered in Hong Kong and employs over 30,000 individuals in 22 countries worldwide. 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.
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