HONG KONG, Dec. 21 /Xinhua-PRNewswire-FirstCall/ -- Johnson Electric
Holdings Limited (HKSE: 179) announces today its interim report for the six
months ended 30th September 2006.
HIGHLIGHTS
-- Turnover up 68% to US$1,052 million
-- EBITDA up 68% to US$142 million
-- Operating profit up 56% to US$96 million
-- Net profit attributable to shareholders up 22% to US$65 million
-- Earnings per share up 22% to 1.76 US cents per share
-- Borrowings reduced by US$80 million to US$628 million
OVERVIEW OF FINANCIAL RESULTS
For the six months period ended 30th September 2006, Johnson Electric
achieved record sales of US$1,052 million, an increase of 68% over the
comparable period in 2005.
The significant increase in turnover was primarily due to the
acquisitions of Saia-Burgess Electronics and Parlex Corporation which were
completed in November 2005. In addition, the sales of two of the Group's
automotive component operations in China are now consolidated following an
increase in shareholdings that have converted these former joint venture and
associated businesses into majority-held subsidiaries. Excluding the
effects of these acquisitions and investments, sales increased by
approximately 6.5% compared to the same period a year earlier.
Johnson Electric's micromotor operations performed satisfactorily in a
challenging market environment typified by high commodity costs and ongoing
competitive price pressures in several market segments. The Group's rapidly
growing trading arm also made progress in expanding its customer base for
sourced precision parts in China and its specialty metals activities
benefited from high material prices and solid demand.
The recently acquired Saia-Burgess Electronics business performed in
line with our expectations during the period. Parlex, on the other hand,
achieved revenue growth slightly ahead of target, but the implementation of
its extensive restructuring program is taking somewhat longer than planned
and one-time costs and charges are delaying its expected progress to
sustained profitability.
Excluding the recently acquired businesses, gross margins improved by
over two percentage points as a result of the combined positive effects of
higher price realisation, product mix changes, and hedging strategies --
which were partially offset by higher material prices and direct labour
expenses.
Including acquired businesses, total Group gross margins improved by
1.1% to 26.4%. After taking into account the amortisation charges of US$9
million related primarily to intangible assets arising out of the
acquisitions of Saia-Burgess Electronics and Parlex and the restructuring
charges and provisions of US$5 million related to the closure of plants in
Dalian, PRC and Cranston,USA, the Group's operating profits increased by 56%
to US$96 million.
The Group incurred financing charges of US$15 million on the debt raised
to complete recent acquisitions and on associated working capital. During
the period, strong operating cash flows enabled the Group to reduce its
outstanding borrowings by US$80 million to US$628 million.
The consolidated profit attributable to shareholders for the first half
of the financial year increased by 22% to US$65 million or 1.76 US cents per
share.
For the full interim report, please refer to
http://xprnnews.xfn.info/johnsonelectric/interimreport2006.pdf .
Media Contact:
Mr. Henry Chiu
Tel: +852-2663-6688
