Electronics Production |
Leoni profits from copper price
The German manufacturer of cables and cable systems Leoni will likely profit from the high copper price. Experts believe that the sales estimate of EUR 2.7 billion is too low.
The lately thriving copper price—standing at around EUR 5'950 per ton (increase by 13% since June 2010) is likely to benefit sales in the Wire & Cable Solutions segment of the company, according to equity research company Montega. Leoni is also benefiting from the significantly increased production volumes in the automotive industry and its many new product launches.
Based on a revenue estimate in 2010 of EUR 2.8 billion and an even EBITDA margin of 8% during 1H/2010, Montega forecasts a positive earnings surprise for Q3 and 2H/2010.
