HONG KONG SAR –
Media OutReach – 13 July 2022 – 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 three months to 30 June 2022.
The Group’s sales for the quarter ended 30 June 2022 were US$840 million compared to US$877 million for the same quarter in 2021, a decrease of 4%. Excluding the impact of currency movements and the acquisition of E. Zimmermann GmbH (“Zimmermann”), sales were flat at US$874 million.
Foreign exchange rate movements had a negative effect of US$37 million on the Group’s sales for the quarter. This was mainly due to the impact of weaker average exchange rates especially for the Euro, but also for the RMB and Canadian Dollar against the US Dollar, compared to the same quarter in 2021. The acquisition of Zimmermann, completed on 31 May 2021, increased sales by US$3 million.
Sales of Automotive Products Group (“APG”) APG’s sales for the quarter ended 30 June 2022 decreased by US$20 million or 3% compared to the same quarter in 2021. Excluding currency effects and the acquisition of Zimmermann, APG’s sales increased by US$9 million or 1% in the quarter. This increase in underlying sales compared to a 4% decrease in global light vehicle industry production volumes in the quarter.
On a regional basis, APG’s sales also fared better than automotive industry production volumes, which were constrained by shortages of semiconductors, in all regions during the quarter. The sales changes by region, excluding currency effects and the acquisition of Zimmermann, were as follows:
In Asia, COVID-related factory lockdowns in China adversely affected sales of powertrain cooling and powder metal products, although other areas such as closure and water pumps increased. In Europe, oil and water pumps, coolant valves and powder metal parts were strong, although sales of other products decreased due to a reduction in light vehicle production in the region. In the Americas, there was strength across many of our product lines.
Sales of Industry Products Group (“IPG”) IPG’s sales for the quarter ended 30 June 2022 decreased by US$17 million or 8% compared to the same quarter in 2021. Excluding currency effects, IPG’s sales decreased by US$12 million or 6% in the quarter, with the following changes by regions:
Asia sales, which primarily represents goods invoiced to Asia-based OEMs and contract manufacturers whose end products are mostly destined to export markets, declined owing to the combination of supply chain disruptions caused by COVID lockdowns in China, ongoing shortages of semiconductor chips and other components, and a decline in demand for some “home-centric” products that had experienced an exceptional surge in sales during the pandemic. In Europe, sales grew in the beverage and lawn segments and, in the Americas, in the medical, ventilation and white goods segments, due to new business wins and increased demand.
Chairman’s Comments on First Quarter’s Sales Performance and Outlook Concerning the first quarter’s sales performance and outlook for the current financial year, Dr. Patrick Shui-Chung Wang, Chairman and Chief Executive, said, “Johnson Electric delivered a satisfactory sales performance in the first quarter in the context of significant disruptions to global manufacturing supply chains, which included ongoing chip shortages in the automotive sector and COVID-related operational restrictions in China.”
“Looking forward, it is presently difficult to gauge the impact of the sharp increase in global inflation on consumer demand across the wide range of end markets we serve. In our Industry Products Group, we are seeing a reduction in order flow among some customer segments which experienced exceptionally strong sales for “home-centric” products during the pandemic. However, in the automotive sector and for some other industrial product applications, we are not presently experiencing any noticeable weakening in underlying demand and the key factor constraining sales growth continues to be shortages of semiconductors and other components. An additional headwind on the Group’s reported sales is the current strength of the US Dollar against the Euro, RMB and Canadian Dollar, which together constitute over half of the Group’s denominated sales.”
“Despite these external challenges, our business units continue to work collaboratively with customers to adjust prices to offset the surge in cost input increases experienced in the past year. Our global operating footprint and geographically diverse sales mix also provides Johnson Electric with strong foundations to navigate further potential volatility in the macro economy.”
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. Hashtag: #JohnsonElectric
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 35,000 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.
Services
Stakeholder mapping, analysis, engagement and communication needs to be detailed to avoid business losses or even worse, a crisis. How can you do this effectively to prevent failure? ...
Data-driven business decisions have never been as crucial, especially in this era. MGBF leverages off, technology, experience and market presence to aid businesses in making accurate decisions. ...
MGBF provides comprehensive strategic advice and results-focused solutions to solve clients' problems in business-government relations so they can focus on their core business. ...
A critical business challenge is meeting the right decision-makers and potential buyers through the best channel and platform. How will you improve your business competency? ...
Upcoming Events
In this episode of 'A Working Lunch with Nordin', MGBF's Nordin Abdullah and regional commentator Eddin Khoo will discuss the biggest threats and opportunities for businesses as we look to manage change in the South China Sea.
This MGBF Roundtable will feature thought leaders form Japan, Australia, Singapore and Malaysia dealing with the critical issues of manipulation of public listed companies and government and their financial impacts.
A series of networking sessions with various business associations and trade organisations exploring high-value opportunities for business leaders and entrepreneurs looking to build the relationships that matter.
This integrated event will include a forum, dedicated business matching, site visits, a gala dinner and a round of golf. Aptly themed, the focus will be on regional food security issues and trends in the context of the supply chain, agriculture technology and trade regulations and policies.
MGBF In The News
Planet QEOS and China Machinery Engineering Corporation (CMEC) are interested in investing RM10 billion to co-develop advanced Megawatt peak (MWp) agrovoltaic in Baram, to further boost Sarawak’s green energy initiative and food security. Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg was briefed on Friday by both the […]
Last week SPM results came out, 373,974 aspirants who have been waiting patiently over the last few months would now know their fate. Some 10,109 have received all A’s, the golden standard of academic success and the ticket to those looking to study the “more advanced” subjects in university. Proudly, […]
The classic knee-jerk reaction is to say, fire the coach, change the leadership of associations, and reduce the funding till they start performing better. This kind of negative reinforcement may work for kindergarten children, but we are dealing with high-performance adults – individuals much further along in their psychological and […]
Since its earliest tea plantations in 1929, Cameron Highlands has grown to become a key player in the agricultural landscape of Malaysia, producing 40 per cent of all vegetables grown. Despite Malaysia shifting its economic focus away from agriculture, the industry remains imperative for food security and the livelihoods of […]
Although at first glance the travel industry and the agricultural sector appear to have nothing in common, they actually share more than meets the eye. The economic benefits of tourism to the agricultural sector can be multiplied several times over. “Tourism brings the end consumers closer to the source, which […]
The Malaysia Global Business Forum (MGBF) recently held a high-level roundtable themed ‘Designing the Future of the Digital Economy’, attended by industry leaders and business associations. The guest of honour was Yang Berhormat Syerleena Abdul Rashid, the Member of Parliament (MP) for Bukit Bendera in Penang. The MP’s Special Session […]
The Malaysia Global Business Forum (MGBF) will be hosting a roundtable on ‘Designing the Future of the Digital Economy’ on 23 February 2023. It is the culmination of the first three MGBF Exclusive Roundtable Series titled ‘The Evolving Threat Matrix in the Digital Economy’ held throughout 2022. According to the […]
The Founding Chairman of the Malaysia Global Business Forum (MGBF), Nordin Abdullah, today spoke on Bernama TV’s leading English talk show, The Brief, hosted by Jessy Chahal, on the topic of a stable political reality and what that means for the Malaysian economy. Nordin said, “The first thing that it […]
More than 1,100 years ago, Muhammad ibn Musa al-Khwarizmi was developing the mathematical formulas that we know today as algorithms which now have become so intertwined with the business fortunes of global media giants and the very fabric of geopolitics. A series of recent high level international reports have revealed […]
KSK Land has been recognised by the Malaysia Global Business Forum (MGBF) for its role in attracting high net-worth individuals to Malaysia post-pandemic. The first challenge in investor attraction is “selling” the country. In the context of Asia, Malaysia is competing with some very established investment destinations. The second […]
Malaysia, in particular Kuala Lumpur, continues to position itself as a regional centre to do business, educate a family and enjoy a global lifestyle. One company, KSK Land, has taken the lead in positioning itself and the city of Kuala Lumpur as a property investment destination for the global citizen […]
The upcoming budget represents an opportunity to build resilience in the critical sectors that will form the backbone of the country’s future-facing economic ambitions. This however needs to be achieved in the context of managing the community sectors most impacted by COVID-19 over the past two years. The Keluarga Malaysia (Malaysian Family) […]
Malaysia Global Business Forum (MGBF) has moved to support the creative economy as the overall economy moves into a recovery phase following the COVID19 pandemic. As a step in the direction of normalcy, the MGBF has agreed to host the art exhibition “I Know You’re Somewhere So Far” by one […]
Congratulations to Datuk Seri Ismail Sabri Yaakob for taking up the mantle of the ninth prime minister of Malaysia. There is nothing normal about the situation; it could not have been scripted but it has kept the spectrum of media, mainstream and social, gripped. The first order of business for […]
In a stirring speech to the nation, President Joseph R. Biden, Jr. stamped his brand of leadership on the presidency, in his first act as the 46th president of the United State of America, it signaled several shifts. Perhaps the weather was foreboding with snow falling before the ceremony that […]
KUALA LUMPUR, 6 July 2022 – As the global economy continues to deal with unprecedented levels of disruption caused by the pandemic and the conflict between Russia and Ukraine, the convergence of energy security and food security issues has become a front-of-mind issue faced by policy makers and consumers alike. […]
KUALA LUMPUR, 23 June 2022 — Malaysia Global Business Forum (MGBF) ties up with scoutAsia to ensure that businesses are equipped with deeper regional insights. The past two years has seen a massive shift in the way businesses are conducted with digitisation, digitalisation and automation continuously being adopted to improve […]
KUALA LUMPUR, 25 May 2022 – The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Security Concerns in Critical Value Chains’ was held in a hybrid setting yesterday at the Eastin Hotel Kuala Lumpur. The guest of honour was Yang Berbahagia Tan Sri Dato’ Seri Rafidah Aziz, former minister of […]
We live in the age of crisis. At the heart of any crisis is the threat of rapid change. Change too deep or too wide that the current coping mechanisms for an individual, corporation or government are unable to remain resilient. An unwelcome paradigm shift, like the proverbial spider, that […]