Johnson Electric (179) Q1 24/25 earnings summary

Executive summary

• Group sales for the quarter ended June 2024 were $935 million, down 2% year-over-year, mainly due to subdued market conditions and currency effects.

• APG sales were flat at $788 million, but increased 1% excluding currency effects, driven by oil pumps, closure, and thermal management products.

• IPG sales declined 10% to $147 million, with notable weakness in EMEA and Americas due to surplus inventory and soft markets.

• Trading conditions at the start of FY24/25 were subdued, with automotive industry volumes normalizing after a strong prior year.

Financial highlights

• Group sales declined 2% year-over-year to $935 million for the June 2024 quarter.

• Total sales decreased by $19 million compared to Q1 FY23/24.

• Exchange rates had an unfavorable $8 million impact on sales.

• IPG contributed approximately 16% of total sales.

Outlook and guidance

• APG expected to remain resilient, leveraging its position in automotive electrification and ongoing innovation.

• IPG faces a challenging near-term outlook due to cautious consumer spending and low confidence; focus is on optimizing cost base and targeting long-term growth segments.