Highlights of FY23/24 Results

HONG KONG SAR - Media OutReach Newswire - 16 May 2024 - Johnson Electric Holdings Limited ("Johnson Electric"), a global leader in electric motors and motion subsystems, today announced its results for the twelve months ended 31 March 2024. Group sales for the 2023/24 financial year totalled US$3,814 million, an increase of 5% compared to the prior year. Net profit attributable to shareholders increased by 45% to US$229 million or 24.71 US cents per share on a fully diluted basis. Underlying net profit, adjusted to exclude non-cash foreign exchange rate movements and restructuring charges, increased by 70% to US$252 million. Sales Performance The Automotive Products Group ("APG"), Johnson Electric's largest operating division, achieved sales of US$3,210 million – an increase of 10% on a constant currency basis. The global automotive sector experienced unusually strong volume growth in the first half of the financial year, largely due to pent up consumer demand for new cars caused by almost three years of severe supply constraints. During the second half of the year, demand growth slowed as supply pressures eased and the effects of higher vehicle prices and financing costs became the predominant factors shaping the market. Nonetheless, over the course of the year, APG continued to maintain above-market sales growth rates due to a product portfolio that is closely aligned with the key long-term technology trends transforming the industry. APG's sales strength extended across every major geographic region. In Asia-Pacific, sales increased by 10% on a constant currency basis compared to the region's light vehicle production volume growth of approximately 8%. In the Americas, constant-currency sales grew by 9% compared to an estimated 6% rise in vehicle production. And in EMEA, APG's constant-currency sales increased by 13% compared to an estimated 7% increase in vehicle production. While specific market dynamics vary by region, the common and most important structural trend driving automotive industry demand is electrification. Presently, one in every three new cars sold globally is either a battery-electric or hybrid-electric powered vehicle – up from one in twelve cars only five years ago. It remains to be seen how fast the pace of electrification evolves from here with multiple factors expected to interplay in determining consumer demand and OEM vehicle production strategies. Among these factors are the continued expansion of charging infrastructure, improvements in vehicle driving range, battery supply chain development, electric vehicle pricing relative to alternatives, and the policy stances of national governments. From a product and technology perspective, APG is strongly positioned to benefit from the changes impacting the industry as it transitions away from the internal combustion engine. On the one hand, a majority of our motion products and subsystems are independent of which type of propulsion mechanism drives a vehicle – with every vehicle requiring an array of closing, opening, locking, adjusting, heating, cooling, and lubricating applications that depend on our electric motors, actuators, solenoids, switches, valves, and pump technologies. On the other hand, the development of the next generation of electric and hybrid vehicles is presenting OEMs with a host of new design and technical challenges that APG is uniquely well-placed to solve. One example of APG's motion technology leadership is a highly advanced integrated thermal management system that combine motors, valves, and pumps – and functions as a key enabler for EVs to simultaneously optimise battery performance and cabin temperature. Another exciting growth...