HELLA GmbH & Co. KGaA Adjusts Fiscal Year Outlook

HELLA GmbH & Co KGaA, known as FORVIA HELLA, has revised its financial outlook for the fiscal year 2024. The company now projects currency and portfolio-adjusted sales between €7.9 and €8.1 billion, down from the earlier forecast of €8.1 to €8.6 billion. Operating income margins are updated to fall between 5.5% and 6.0%, lower than the previous range of 6.0% to 7.0%. Additionally, net cash flow in relation to reported sales is now expected to be between 2.2% and 2.7%, revised from around 3%.

The adjustment is attributed to weaker than anticipated light vehicle production and delays in series launches. Other influencing factors include a temporary slowdown in electrification and customer and product mix effects, particularly in China. In response, the management board plans to expand business activities in American and Asian markets and improve cost structures. They also aim to accelerate the competitiveness program for Europe, launched in February 2024, with anticipated positive effects starting in 2025.