Exchange rates hit Johnson Electric

Johnson Electric (0179) reported a 4 percent decrease in first-quarter sales to US$840 million (HK$6.55 billion).

In sales for the quarter, US$37 million was negatively affected by foreign exchange rate movements.The decrease was mainly due to the impact of weaker average exchange rates, especially for the euro, compared to the same quarter in 2021.

Meanwhile, the acquisition of Zimmermann, completed on May 31 last year, increased sales by US$3 million.

In Automotive Products group sales, sales for the quarter ended June 30 fell by US$20 million over the same quarter in 2021 while in the Industry Products group, sales for the quarter ended June 30 decreased by US$17 million compared to the same quarter in 2021.

The impact of the rapid increase in global inflation on consumer demand was hard to predict, while the semiconductor shortage was a key factor in determining the company's automotive products sales, said Patrick Wang Shui-chung, the chief executive of Johnson Electric.