Hella Reports Sales of $5.7 Billion With Increased Profits

PLYMOUTH, Mich.--Hella KGaA Hueck & Co., a tier-one supplier of automotive lighting and electronic components, reported a seven percent increase in sales to $5.7 billion during the company’s 2007-08 fiscal year.

Operating profit, measured by earnings before interest and tax (EBIT), grew from $66.8 million during the year-ago period to $209 million. Preliminary fiscal-year results showed a four percent return on sales. Including one-time charges and financing, Hella’s EBIT increased to $336.8 million.

“With the end of fiscal year 2007-08, Hella is practically debt-free,” said Dr. Jürgen Behrend, chairman and president of Hella. “This is a significant sign for our customers about our financial well-being and ability to carry through with our projects.”

In its official credit opinion, the Moody’s

credit rating agency indicated that Hella is fiscally sound. Moody’s gave Hella a credit rating of “Investment Grade, Baa3, stable” and cited the supplier as having sufficient financial liquidity.

“Our positive results for the past fiscal year are remarkable given the slowdown in many parts of the global automotive industry,” noted Dr. Martin Fischer, president of Hella’s U.S. Corporate Center with responsibility for the automotive supplier’s lighting, electronics and aftermarket business units in the United States. “Hella was able to increase sales and profits while investing heavily in new technologies and development projects.”

Hella’s new technologies and product developments include the first full-LED (light-emitting diode) headlamps launched in North America on a high-volume vehicle. LEDs are an innovation in the field of automotive lighting technology. Through its continuous investments and technological competence, Hella is a leader in LED lighting.

A further key focal point is energy management. Hella has been active in this field for some years now with innovative products, generating sales of approximately $363 million.

Hella also is a leader in other important technologies including driver assistance systems that are designed to increase safety. Some of its products are the side obstacle warning, parking assistance system, adaptive cruise control and lane change assistant.

“Driver assistance systems are the result of coordinating electronics and lighting products,” Fischer said. “The development of these devices presents Hella with enormous sales opportunities.”

An example of the fusion of Hella’s lighting and electronics technologies is the Opel Insignia, a medium-size car offered by the General Motors-owned brand. For the first time in this

class, the car offers drivers state-of-the-art lighting technology and a front-camera assistance system from Hella.

Hella also sees further growth in the sales of its sensors, converters and pumps during the next few years.

Joint ventures (JVs) are another area where Hella has built upon its strong foundation as a technology and innovation leader. For example,

Hella has become a partner in Hella Gutmann Solutions, a provider of vehicle diagnostic systems. The Hella Gutmann JV will strengthen Hella’s relationship to wholesalers and garages in the aftermarket industry.

“Hella intends to expand its business with

garage-oriented diagnosis equipment for vehicles in Europe,” Behrend said. “We believe that through the

partnership with Gutmann, we can provide a good response to the growing market demand for diagnostic competence.”