Electronics Production | November 08, 2007
Leoni continued to grow in the Q3 of 2007
Leoni AG continued on its expansion course in the third quarter of 2007 as well: The consolidated sales of this specialist in wire, cable and wiring systems increased by 10.5 percent year on year to EUR 593.3 million (previous year: 536.7).
The volume of business increased by a total of 16 percent in the first nine months, to EUR 1.77 billion (2006: 1.53). Although Leoni recorded a drop in earnings before interest and taxes (EBIT) to EUR 34.6 million in the third quarter of 2007 (37.7 in 2006) due to pre-production spending on future projects, the EBIT of EUR 103.8 million for the period from January to September 2007 held exactly at the corresponding figure for the previous year. Consolidated net income was up 25 percent in the third quarter of 2007 to EUR 27.8 million (2006: 22.3). Added up over the first nine months, net income rose to a new high of EUR 72.4 million (2006: 60.7), boosted by tax benefits. The basis for Leoni AG’s ongoing expansion is its strong position in growing markets and a successful acquisition strategy. Of the sales increase over the first three quarters of 2007 totalling EUR 244.7 million, Leoni generated a large proportion of EUR 99.4 million from its own resources. Acquisitions accounted for EUR 101.3 million. The remaining EUR 44.0 million was due to a higher price of copper. At the end of September 2007, Leoni employed 34,958 people Group-wide, up from 34,753. Of this total, 30,970 people worked at facilities outside Germany (previous year: 30,950). In Germany, the workforce increased, due to new subsidiaries and recruitment, by 185 employees to 3,988 people. Trend towards higher-end equipment on cars continuing In the Wiring Systems division, external sales in the third quarter of 2007 again rose slightly versus the same period of the previous year to EUR 229.3 million (from 225.0). After nine months, the gain was one of about 4 percent to EUR 736.0 million (previous year: 710.6). Leoni benefited from the ongoing trend towards higher-end equipment on vehicles and thus towards complex wiring systems. Business grew above all with customers BMW and VW as well as with the commercial vehicle industry. Due to major pre-production spending on new projects, EBIT in the first three quarters of 2007 was down from EUR 50.8 million in the same period of the previous year to EUR 40.4 million. Development work in particular was stepped up to prepare for these new projects, which will make initial sales contributions from the second half of 2008. In addition, Leoni expanded its production capacity at facilities in China, Tunisia and the Ukraine among other locations. Leoni AG’s good business performance in the period from January to September 2007 confirms its forecasts for the year as a whole: From today’s perspective, Leoni’s consolidated sales will rise from € 2.1 billion in 2006 to about € 2.3 billion in fiscal 2007. EBIT should be roughly in line with the previous year’s record level of EUR 130 million. Fiscal 2007 consolidated net income is likely to set a new high of more than EUR 83 million (2006: 79.3). Leoni AG will improve its position in the market significantly and will obtain further growth impetus as a result of taking over the wiring systems division of Valeo, which, subject to competition authority approval, will take effect on 1 January 2008.
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