HONG KONG - Johnson Electric Holdings Limited ('Johnson Electric'), a global leader in electric motors and motion subsystems, today announced its results for the six months ended 30 September 2022.
Total Group sales for the first half of FY22/23 totalled US$1,770 million, an increase of 6% over the first half of the prior financial year. Excluding the effects of foreign currency movements and an acquisition, sales increased by 11%. Net profit attributable to shareholders decreased by 40% to US$56 million or 6.21 US cents per share on a fully diluted basis. Net profit, after adjusting for the effects of non-cash foreign exchange rate movements and restructuring costs, decreased by 19% to US$78 million.
Automotive Products Group
The Automotive Products Group ('APG'), which accounted for 79% of total Group sales in the period under review, reported a 16% increase in sales on a constant currency basis. This robust growth rate, which comfortably exceeded global auto industry production volume growth over the same period, reflected the division's focus on technology solutions that are enabling the industry's shift to increased electrification, reduced emissions, and improved safety and comfort.
The global auto industry is presently experiencing its greatest upheaval in decades as a result of the combination of near-term supply chain constraints, the structural shift away from the internal combustion engine to electric propulsion, and increasing macroeconomic headwinds. Although the recent global shortages of semiconductors have shown some signs of improvement, this critical supply bottleneck is continuing to have a highly disruptive impact on OEM production schedules for specific vehicle models that then cause knock-on disruptions and production inefficiencies for component suppliers.
On a geographic basis, APG grew sales in constant currency terms in each of its three major regional markets. However, the operating conditions and factors currently influencing end-market demand in these markets are starkly different.
In the Americas, APG's sales increased by 23% on a constant currency basis. As a result of supply constraints and pent-up consumer demand for new vehicles, US light vehicle inventories remain at below-average levels and the average retail price of a car has risen sharply to more than US$48,000 (and currently stands at US$65,000 for an electric vehicle). In Europe, although OEMs were also able to command higher retail prices for their most sought-after models, operating conditions were extremely challenging due to ongoing components shortages, high inflation, and growing concerns among both consumers and producers over the severe energy crisis triggered by the war in Ukraine. In this context, APG Europe performed creditably with constant currency sales growth of 8% - though it should be noted that due to the strength of the US Dollar against the Euro during the period, APG Europe's reported sales in US Dollars declined by 3%. Finally, in China, end-market demand continues to be highly influenced by government policies. In the second quarter of the 2022 calendar year, car sales plunged due to Covid-related lockdowns. Sales demand subsequently recovered, due in part to tax incentives to purchase new energy vehicles, but remained relatively soft as Covid-related restrictions have continued and economic conditions have deteriorated. APG's sales in Asia, the majority of which are to China, nonetheless increased by 17% in constant currency terms.
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 35,000 individuals in 22 countries worldwide. Johnson Electric Holdings Limited is listed on The Stock Exchange of Hong Kong Limited (Stock Code: 179).
Forward Looking Statements
This news release contains certain forward looking statements with respect to the financial condition, results of operations and business of Johnson Electric and certain plans and objectives of the management of Johnson Electric.
Words such as 'outlook', 'expects', 'anticipates', 'intends', 'plans', 'believe', 'estimates', 'projects', variations of such words and similar expressions are intended to identify such forward looking statements. Such forward looking statements involve known and unknown risk, uncertainties and other factors which may cause the actual results or performance of Johnson Electric to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding Johnson Electric's present and future business strategies and the political and economic environment in which Johnson Electric will operate in the future.
Contact:
Tel: (852) 2522-3822
Email: georgeana.fung@etymon.com.hk
JOHNSON ELECTRIC HOLDINGS LIMITED 
