© olgalis dreamstime.com Business | May 13, 2014
Leoni: Last week's guidance confirmed
Leoni AG made a dynamic start to the current year. In the first three months of 2014, the provider of cables and cable systems to the automotive sector and other industries increased its consolidated sales by over 6 percent year on year to the highest ever quarterly total of EUR 1,020.2 million (previous year: EUR 959.0 million).
EBIT was up by more than 31 percent to EUR 50.6 million (previous year: EUR 38.5 million), underpinned by the larger amount of sales, better capacity utilisation and growth in profitable areas of business. Consolidated net income rose by one third or so to EUR 31.6 million (previous year: EUR 22.6 million). To be able to continue to grow and to prepare for impending project start-ups, Leoni invested EUR 35.1 million in property, plant and equipment as well as intangible assets during the period under report, which was almost 8 percent more than in the first quarter of 2013 (previous year: EUR 25.5 million). Among other things, the Company set up and expanded wiring systems plants in China, Mexico and Serbia as well as capacity to make automotive and special cables in Eastern Europe. Particularly in these locations Leoni also recruited additional employees in the first three months, taking the total number worldwide to 64,071 at the end of March 2014 – 2,480 more people than at the turn of the year (31 December 2013: 61,591). Leoni employed 4,224 people (31 December 2013: 4,222) in Germany and the number outside Germany came to 59,847 (31 December 2013: 57,369). Wiring Systems: heavy demand from the car and commercial vehicle sector The Wiring Systems Division’s sales of wiring systems and cable harnesses were up, in the wake of the continuingly favourable global automotive business, by more than 5 percent year on year to EUR 597.7 million in the period from January to March 2014 (previous year: EUR 567.8 million). Leoni again benefited from the good market position of its export heavyweight German customers in Asia and North America, as well as from the recovery of the French carmakers. In addition there was growing demand for complex engine cable harnesses for the commercial vehicle industry in Europe and the United States because of the stricter emission standards. Sales to the international component supply industry also rose. The division’s EBIT climbed by about 30 percent to EUR 31.8 million (previous year: EUR 24.3 million). Wire & Cable Solutions: noticeably revived industrial business The Wire & Cable Solutions Division’s sales were up by 8 percent to EUR 422.6 million in the first quarter of 2014 (previous year: EUR 391.2 million). Demand for automotive cables remained unabatedly high in Asia and the Americas, while also gaining momentum in Europe thanks to the economic recovery. The more favourable economic setting also led to Leoni generating considerably more sales in the strategically important industrial sectors involving cables and cable systems for the capital goods and medical technology industries as well as for communication and infrastructure projects. The improved degree of capacity utilisation contributed to the Wire & Cable Solutions Division’s EBIT increasing by nearly 34 percent to EUR 18.8 million (previous year: EUR 14.1 million) even though the division had to absorb charges of EUR 3.5 million during the period under report (previous year: EUR 0.3 million) due to the sharp drop in the market price for copper towards the end of the quarter. Growth plans underpinned by new orders Alongside the dynamic performance in the first quarter, various new contracts also underpin the Company's forecasts for 2014 and the subsequent years. The Wiring Systems Division, for instance, received new orders from French carmakers as well as from the international commercial vehicle and component supply industries. The Wire & Cable Solutions Division was commissioned to supply automotive cables for a car platform of a US manufacturer. Leoni will also be supplying high quality cable systems for the robots of a German motor vehicle manufacturer and equipping the world’s largest oil and gas refinery in India with special cables. Leoni still forecasts increases to approx. EUR 4.1 billion (2013: EUR 3.9 billion) in consolidated sales and to EBIT of more than EUR 200 million for 2014 (2013: EUR 163.1 million).
Intel nabs former GlobalFoundries, IBM executive Intel Corp has hired former IBM chip exec and GlobalFoundries CTO Gary Patton to its team.
Yokogawa UK partners with power supply manufacturer TDK-Lambda Yokogawa UK has signed a distribution deal with TDK-Lambda. Through Yokogawa’s distribution channels, customers across the UK will now have access to TDK-Lambda’s range of laboratory power supplies.
Denso & TMC launches JV to develop in-vehicle semiconductors DENSO Corporation and Toyota Motor Corporation have named the joint venture to be established in April 2020 MIRISE Technologies. Through the JV the companies aims to to contribute through the development of advanced semiconductor electronics technologies.
Murata to cease production at several subsidiaries Saitama Murata Manufacturing – previously Toko, Inc. – a wholly-owned subsidiary of Murata Manufacturing is ceasing production at its production subsidiaries Shantou S.E.Z. Huajian Electronics and Hua Jiuh Technology by the end of 2019.
KORE Wireless picks up Integron KORE Wireless Group announced the acquisition of Integron, an IoT solutions and managed services provider specializing in the connected health market.
Aixtron qualified for MicroLED production at PlayNitride PlayNitride Inc., has qualified Aixtron's AIX G5+ C MOCVD system for the manufacturing of GaN-based (gallium nitride) MicroLEDs.
memsstar ships MEMS production system to University of Freiburg memsstar Ltd., a provider of etch and deposition equipment to manufacturers of semiconductors and MEMS,has shipped its three-chamber ORBIS 3000 system for MEMS research and manufacturing to the Department of Microsystems Engineering (IMTEK) of the University of Freiburg, Germany.
Vishay's plant in Turin, Italy, receives R&D grant Vishay Intertechnology’s facility in Borgaro Torinese, Italy, has received an industrialisation of research results (IR2) R&D grant from the EU and the Regional Government of Piedmont.
MacDermid Alpha acquires Kester Connecticut-based MacDermid Alpha Electronics Solutions has announced the acquisition of Kester, a global supplier of materials used in electronics assembly and semiconductor applications.
LuminaLED opens new production facility The company officially opened the doors to its new production facility in Chisinau, Moldova on the last day of November.
LeddarTech partners with First Sensor to accelerate LiDAR deployment LeddarTech, a LiDAR platform provider, has entered into a strategic collaboration with First Sensor AG, a developer of advanced sensor solutions that is also now joining the Leddar Ecosystem.
Digi-Key extends partnership with Precogs Electronics component distributor, Digi-Key Electronics has renewed its partnership agreement with Paris-based startup, Precogs.
Rambus completes acquisition of the Verimatrix's silicon IP Rambus has completed acquisition of the silicon IP, secure protocols and provisioning business from Verimatrix, formerly Inside Secure.
Osram invites ams to talks about the future Following the successful takeover offer from ams AG, Osram’s Managing Board has invited the management of ams to make the journey together to becoming a global technology powerhouse for sensor solutions and photonics on the basis of the Business Combination Agreement.
Marvell completes sale of Wi-Fi connectivity business to NXP Marvell has completed the sale of its Wi-Fi Connectivity business to NXP. The divestiture encompasses Marvell's Wi-Fi and Bluetooth technology portfolios and related assets.
Cadence to acquire AWR from NI Cadence Design Systems and National Instruments have entered into a definitive agreement under which Cadence expects to acquire AWR Corporation, a wholly owned subsidiary of National Instruments (NI).
Nidec completed acquisition of Roboteq Nidec Corporation has completed the acquisition of 90% ownership of Roboteq Inc., a U.S.-based designer of ultra-low voltage (ULV) drives, from its owners through Nidec Motor Corporation.
Vesper's ZPL technology included in Alexa-enabled headset Acoustic sensors developer, Vesper, has had its proprietary ZeroPower Listening (ZPL) technology certified by Amazon for extended battery and far-field voice interactions. Vesper's piezoelectric MEMS microphones are powering the first hands-free, extended battery life Alexa-enabled headset that uses ZPL technology.
AutoChips & X-FAB launch mass production of China’s first TPMS chipset AutoChips Inc., a Chinese automotive electronics chip design company (and a subsidiary of NavInfo), in partnership with X-FAB Silicon Foundries, has successfully initiated volume production of a Tire Pressure Monitoring System (TPMS) chipset.
Sumitomo launches 150mm GaN-on-SiC production with Aixtron system Japanese group Sumitomo Electric Device Innovations, Inc. (SEDI) has ordered an AIX G5+ tool from Aixtron, with 8x6-inch wafer configuration in order to expand the production capacity of GaN-on-SiC (gallium nitride-on-silicon carbide) radio frequency (RF) devices for wireless applications.
Green light for NXP’s acquisition of Marvell’s wireless connectivity assets NXP Semiconductors N.V. and Marvell have cleared all necessary hurdles and received the required regulatory approvals for NXP’s acquisition of the wireless connectivity portfolio from Marvell.
Murata continues to expand its Okayama operations A production building that had been under construction since October of last year has been completed at Murata’s production subsidiary Okayama Murata Manufacturing, in Setouchi City, Okayama Prefecture.Load more news