Johnson Electric has reported 2015 sales of US$2,236 million – an increase of 5% compared to the prior financial year. Operating profits decreased by 15% to US$207 million. According to the company, the sales performance of the group during the year was rather mixed and, as in recent prior years, was negatively impacted by the strength of the US dollar compared to a number of foreign currencies.
The automotive products group (APG), the largest operating division, achieved sales of US$1,605 million including Stackpole International, an increase of 5% excluding the acquisition and currency movements. The industry products group (IPG) reported a 7% decrease in sales (down 5% in constant currency terms) to US$631 million.
‘Johnson Electric’s results for the financial year 2015/16 reflected a difficult macro-economic environment, unfavourable foreign exchange rate movements and non-recurring acquisition transaction expenses,’ said Dr Patrick Wang, chairman and chief executive. ‘Although net income, as previously projected, declined from last year’s record levels, the underlying operating performance of the business remained solid and our financial condition continues to be healthy.
‘Despite the rather gloomy macro-economic picture, I do see reasonable grounds to be upbeat about Johnson Electric’s own growth trajectory. In the short term, we can expect to see the company’s revenue and earnings base in the 2016/17 financial year benefit from a full year contribution from Stackpole International and approximately ten months of contribution from AML Systems.’
This story is reprinted from material from Johnson Electric, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
