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© leoni Business | July 28, 2017

Leoni outperforms expectations in the 1st half of 2017

Sales and earnings of Nuremberg-based cable manufacturer Leoni AG are developing better than expected in the first half of fiscal 2017, the company writes.
Sales for the period from January to June amount to EUR 2.44 billion (first half of 2016: EUR 2.24 billion). The sales increase of about 9 percent year on year is the result, on the one hand, of the good demand from the car, commercial vehicle and supplier industry as well as, on the other hand, the increased price of copper. If metal prices were to hold at the level of the first six months later in the year, full-year sales in 2017 will probably exceed the budgeted figure of EUR 4.6 billion (actual 2016: EUR 4.43 billion).

Operational improvements in the Wiring Systems Division as well as the sale of the Wire & Cable Solutions Division’s electrical appliance assemblies business completed in the second quarter of 2017 drive a stronger increase in profit than anticipated at the beginning of the year. Deconsolidation of this business provides income of about EUR 25 million. After six months, consolidated Group earnings before interest and taxes (EBIT) more than doubled year on year to approx. EUR 137 million (first half of 2016: EUR 62 million).

Given its better earnings performance in the first half, Leoni AG’s Board of Directors has decided today to raise its EBIT forecast for the whole of 2017 from previously EUR 180-200 million to now EUR 190-210 million.

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August 22 2017 10:36 AM V8.6.0-2