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HONG KONG SAR –\u00a0Media OutReach<\/a>\u00a0–\u00a013 July 2021\u00a0–\u00a0This news release is made by Johnson
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The Board
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The Group’s
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Excluding
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The
Sales of Automotive
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APG’s sales
A large
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Sales of Industry
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IPG’s sales
Sales in
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Additionally,
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Chairman’s Comments on First
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Concerning
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“Nonetheless,
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Cautionary
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Shareholders
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Shareholders
\nElectric Holdings Limited<\/a> (“Johnson Electric” or the “Company” and together
\nwith its subsidiaries, the “Group”) for the business operations and selected
\nunaudited financial information of the Group for the three months ended 30 June
\n2021.<\/p>\n
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\nof Directors of the Company considers the publication of quarterly sales
\nperformance updates to be consistent with international corporate disclosure
\nbest practice. The objective of this announcement is to provide transparency
\nand to ensure that investors and potential investors receive equal access to
\nthe same information at the same time.<\/p>\n
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\nsales for the quarter ended 30 June 2021 were US$877 million compared to US$517
\nmillion for the same quarter in 2020, an increase of 70%. It should be noted
\nthat sales in the same quarter of the prior financial year were significantly
\nimpacted by the COVID-19 pandemic. <\/p>\n
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\ncurrency movements and acquisitions, sales increased by 61% to US$831 million.
\nForeign exchange rate movements had a positive effect of US$45 million on the
\nGroup’s sales for the quarter. This was mainly due to the impact of stronger
\naverage exchange rates for the Euro, the Chinese Renminbi and the Canadian
\nDollar against the US Dollar, compared to the same quarter in 2020.<\/p>\n
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\nacquisition of E. Zimmermann GmbH (“Zimmermann”), a specialist automotive
\nmachining business based in Germany, on 31 May 2021 added US$1 million to sales
\nfor the quarter ended 30 June 2021.<\/p>\n
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\nProducts Group (“APG”)<\/b><\/p>\n
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\nfor the quarter ended 30 June 2021 increased by US$313 million or 87% compared
\nto the same quarter in 2020. Excluding the acquisition of Zimmermann and
\ncurrency effects, APG’s sales increased by US$270 million or 75% in the
\nquarter, with the following changes by region:<\/p>\n\n
\nincreased 21%<\/span><\/li>\n
\nincreased 128%<\/li>\n
\nincreased 157%<\/li>\n<\/ul>\n
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\npart of this increase was due to the rebound in light vehicle production
\nvolumes especially in Europe and the Americas where sales were significantly
\nlower in the same quarter in 2020, when many customer plants were shut down due
\nto COVID-19. Nonetheless, APG’s sales growth in the period exceeded the
\nincrease in production volumes for the automotive industry overall in all
\nregions. Sales benefitted from new and recent programmes for window-lift,
\nsunroof and power-lift gate, braking, seat and thermal management applications.
\nAPG also experienced increased customer demand for its products for heating,
\nventilation and air-conditioning, lighting, steering and fuel cell
\napplications. <\/p>\n
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\nProducts Group (“IPG”)<\/b><\/p>\n
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\nfor the quarter ended 30 June 2021 increased by US$47 million or 30% compared
\nto the same quarter in 2020. Excluding currency effects, IPG’s sales increased
\nby US$43 million or 27% in the quarter, with the following changes by region:<\/p>\n\n
\nincreased 33%<\/span><\/li>\n
\nincreased 24%<\/li>\n
\nincreased 23%<\/li>\n<\/ul>\n
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\nthe lawn and garden, white goods, window automation and other home-centric
\nsegments demonstrated particularly strong growth due to a combination of recent
\nprogramme launches, new business wins and increased market demand. Sales in the
\nmedical segment increased, as automated surgical tools took some market share
\nfrom manual medical devices.<\/p>\n
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\nit should be noted that sales to some of IPG’s smaller customers and
\ndistributors were adversely affected by the COVID-19 pandemic in the same quarter
\nin 2020. <\/p>\n
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\nQuarter’s Sales Performance and Outlook<\/b><\/p>\n
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\nthe first quarter’s sales performance and outlook for the current financial
\nyear, the Chairman and Chief Executive, Dr. Patrick Shui-Chung Wang, said,
\n“Johnson Electric’s positive business trajectory in the second half of the past
\nfinancial year continued in the first quarter of FY2021\/22. This was achieved
\ndespite ongoing global shortages of semiconductors that, combined with other
\nsupply chain bottlenecks, are hampering sales fulfilment for some of our
\nbusiness units. And, as noted in previous investor guidance, the sharp increase
\nin commodity prices that accompanied the global economic rebound is also
\nexerting pressure on gross margins in the shorter term.”<\/p>\n
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\nwe continue to experience strong customer demand in all regions for our portfolio
\nof innovative motion products and technology solutions that are designed to
\naddress the key growth drivers in the end-markets that we serve. In the
\nautomotive sector, these include electrification, emissions reduction, fuel
\neconomy, higher safety and greater comfort. In industrial and consumer markets,
\nthe focus is on energy efficiency, increased controllability and cost-effective
\nsolutions that improve health and well-being. Across each of these areas, I am
\nconfident that Johnson Electric is exceptionally well positioned to compete and
\nwin. In summary, the Group remains firmly on track to deliver healthy sales
\ngrowth in the current financial year.”<\/p>\n
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\nStatement<\/b><\/p>\n
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\nand potential investors in the Company are reminded that the information
\nprovided in this news release,
\nincluding information related to the expected outlook for the full year, is
\nbased on the Group’s unaudited internal records and management accounts. This
\ninformation has not been reviewed or audited by the Company’s auditors.<\/p>\n
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\nand potential investors should exercise caution when dealing or investing in
\nthe shares of the Company.<\/b><\/p>\n