Johnson Electric’s sales climb 70% to US$877m in Q1

This is higher than US$517m in the same period last year.

Johnson Electric Holdings Limited reported its sales climbed 70% to US$877m in the first quarter (Q1) of the year, linked to the impact of changes in the foreign exchange rate. 

The group noted the foreign exchange rate movements had a positive effect worth US$45m on the quarter’s sales. This was driven by the stronger average exchange rates for the Euro, Chinese Renminbi, and the Canadian Dollar against the US Dollar. 

Q1’s sales performance is also higher compared to US$517m, recorded in Q1 2020 when the group was heavily impacted by the pandemic. 

In addition, the acquisition of Germany-based special automotive machining business, E. Zimmermann GmbH, also contributed some US$1m to the quarter’s sales. 

“Johnson Electric’s positive business trajectory in the second half of the past financial year continued in the first quarter of FY2021/22,” Chairman and Chief Executive Patrick Shui-Chung Wang said.

“This was achieved despite ongoing global shortages of semiconductors that, combined with other supply chain bottlenecks, are hampering sales fulfilment for some of our business units. And, as noted in previous investor guidance, the sharp increase in commodity prices that accompanied the global economic rebound is also exerting pressure on gross margins in the shorter term.”

Johnson Electric’s automotive products group sales rose 87% to US$313m; whilst its industry products group sales increased 30% to US$47m. 

“We continue to experience strong customer demand in all regions for our portfolio of innovative motion products and technology solutions that are designed to address the key growth drivers in the end-markets that we serve,” Shui-Chung Wang also said.

“The group remains firmly on track to deliver healthy sales growth in the current financial year.”