Electronics Production | March 26, 2008
Leoni announces fiscal figures for 2007
The Leoni Group maintained its course of growth in the 2007 financial year, exceeding its sales and earnings targets set at the beginning of the year.
As already announced in preliminary figures, consolidated sales rose by 12.3% and thus to a new record level of €2, 36 billion (PY: €2, 10 billion). Despite substantial pre-production spending on upcoming orders, the earnings before interest and taxes of €129.6 million nearly matched the previous year’s high level (of €130.6 million). With an increase of about 9%, Leoni generated a new high in net income of €86.2 million (PY: €79.3 million). Free cash flow before spending on acquisitions and the dividend amounted to €100.6 million (PY: €65.9 million) and was thus well up on projections. Spending on property, plant and equipment as well as intangible assets rose to €93.7 million in the period under report (PY: €83.7 million) and was therefore again well ahead of the depreciation/amortisation of €63.4 million. Both Leoni business divisions boosted their production capacity in 2007: To prepare for new projects from the motor vehicle industry, the Wiring Systems division expanded its facilities outside Germany. The Wire & Cable Solutions division invested above all in new plant to produce special cables. Group-wide, Leoni employed 36,855 people on 31 December (PY: 35,129). This increase of about 5% was the result largely of expanded activity in the Wiring Systems division at various facilities and of acquisitions in the Wire & Cable Solutions division. In Germany, the number of employees grew by 183 to 4,060. The Wiring Systems division benefited in the past year from the ongoing trend towards more electronic equipment in cars and thus to more complex wiring systems. The division consequently increased its sales by more than 3 percent to €986.0 million (PY: € 954.2 million). Wiring systems and cable harnesses for Mercedes Benz, General Motors and BMW as well as Ford were the main sales drivers. Based on the good prospects for both divisions, Leoni’s consolidated sales will increase to at least €3 billion in 2008, with earnings before interest and taxes rising to about €140 million. At Group-level, sales are expected to increase to about €3.3 billion in 2009. Operating earnings should rise disproportionately strongly.