Johnson Electric Holdings Limited, headquartered in Hong Kong, China, has reported the group’s sales for the quarter ended 30 June 2016 were US$686 million compared to US$526 million in the same quarter in 2015, representing an increase of 30%. Excluding currency effects and acquisitions, sales increased by 4% to US$547 million. The acquisitions of Stackpole International and AML Systems together added US$144 million to the Group’s sales.
Stackpole’s sales for the quarter were US$126 million and AML’s sales contribution since its acquisition on 18 May 2016 were reported to be US$18 million. Foreign exchange rate movements, particularly the depreciation of the Chinese Renminbi against the US Dollar, had an adverse impact of US$5 million on the Group’s sales during the quarter.
In the company’s Automotive Products Group (home to Stackpole and AML amongst others), sales, excluding currency effects and the acquisitions of Stackpole and AML, increased US$19 million compared to the same period last year. The Automotive Products Group’s organic sales growth was largely driven by an increase in demand for products for powertrain cooling, engine air management, braking and engine coolant valve applications. This was slightly offset by lower sales of products for engine fuel management applications.
Including Stackpole and AML but excluding currency effects, the Automotive Products Group’s sales increased by 44%.
Concerning the first quarter’s sales performance and outlook for the current financial year, the Chairman and Chief Executive, Dr Patrick Shui-Chung Wang, stated, “In the context of a sluggish global economy, Johnson Electric delivered a very solid sales performance in the first quarter of the 2016/17 financial year. The recently acquired Stackpole and AML businesses are performing as expected and we are excited by the new set of business opportunities that the combination with Johnson Electric has enabled.”