DGAP-Adhoc: Leoni adjusts targets for the year to altered economic conditions and approves share buy-back programme
14.10.2008
Leoni AG / Forecast/Share Buyback
14.10.2008
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
=--------------------------------------------------------------------------
Leoni adjusts targets for the year to altered economic conditions and
approves share buy-back programme
Nuremberg, 14 October 2008 - From today's perspective, Leoni AG no longer
expects to attain the targets set for the 2008 financial year in full. The
Management Board now projects sales of at least EUR 2.9 billion (previous
forecast: at least EUR 3.0 billion) and earnings before interest and taxes
(EBIT) of between EUR 110 and 120 million (previously approx. EUR 140
million). Main reason for this revised forecast is that the Wiring Systems
division is expecting a distinctly weaker 4th quarter. It is to be feared
that the automotive industry will make further cuts in addition to the
scaling back or suspension of production already announced in the last two
weeks.
Noticeable decline in sales has been recorded now in the Wire & Cable
Solutions division as well, in particular in its segments automotive cables
and cord sets for electrical appliances. There is still a steady trend of
business though in most areas of this division. This is due to ongoing
strong demand for special cables, for instance in the capital goods
industry, in the petrochemical business and the medical equipment sector.
Besides lacking gross margins resulting from reduced sales, it has to be
expected that some writedowns on inventory in the Wire & Cable Solutions
division as at the 31 December 2008 reporting date will be required because
of the sharp drop in the price of copper in past weeks to the most recent
level of about EUR 4 per kilogramme. This, too, adds to the adjusted EBIT
guidance.
Leoni AG adjusts, in response to current developments, its flexible
processes for producing wiring systems, which are all made outside
Germany, to the changed conditions. The requirement for adjustments,
however, will be toned due to the fact that early in 2009 setting up
capacities for series production start-ups of new car projects will become
necessary.
Comprehensive interim reporting with more detailed statements will follow
with presentation of the 3rd quarter figures on 5 November 2008.
Furthermore, Leoni AG intends to launch a share buy-back programme. This
will involve buying back own shares in the Company of up to 10 percent of
share capital, equating to a maximum of 2,970,000 shares. The shares will
be bought back particularly for resale to third parties in the context of
acquiring businesses, parts of businesses or investing in companies. The
buy-back will be carried out via the stock market and will be funded from
the Group's operating cash flow.
By launching the programme the Management Board makes use of the Annual
General Meeting's authorisation of 15 May 2008 to buy back own shares. It
entitles the Company to buy back shares up to 10% of its share capital
until 14 November 2009, either via the stock market or by means of a public
offer to all shareholders. The per-share purchase price must not exceed by
10% or fall more than 50% short of the average daily trading
volume-weighted closing prices of the share on the three trading days in
the XETRA trading system of the Frankfurt Stock Exchange preceding the
respective purchase.
If the authorisation to buy back own shares was to be replaced at the next
Annual General Meeting on 14 May 2009 by fresh authorisation, the share
buy-back could be continued on the basis of such new authorisation.
The buy-back will be carried out in appropriate application of Commission
Regulation (EC) no. 2273/2003 dated 22 December 2003. The announcements
concerning the share buy-back programme will be published on the Company's
website as well as in the electronic Bundesanzeiger and in Börsen-Zeitung.
Contact for journalists:
Sven Schmidt
Public & Media Relations
Phone +49 (0)911-2023-467
Fax +49 (0)911-2023-231
E-mail presse@leoni.com
Contacts for analysts and investors:
Frank Steinhart/ Susanne Kertz
Investor Relations
Phone +49 (0)911-2023-203/ -274
Fax +49 (0)911-2023-209
E-mail invest@leoni.com
Contact:
Sven Schmidt
Leoni AG
Public & Media Relations
Tel: +49 (0)911 / 2023-467
E-mail: sven.schmidt@leoni.com
14.10.2008 Financial News transmitted by DGAP
=--------------------------------------------------------------------------
Language: English
Issuer: Leoni AG
Marienstraße 7
90402 Nürnberg
Deutschland
Phone: +49 (0)911 20 23-274
Fax: +49 (0)911 20 23-209
E-mail: invest@leoni.com
Internet: www.leoni.com
ISIN: DE0005408884
WKN: 540888
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart
End of News DGAP News-Service
=--------------------------------------------------------------------------
Leoni AG / Forecast/Share Buyback
14.10.2008
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
=--------------------------------------------------------------------------
Leoni adjusts targets for the year to altered economic conditions and
approves share buy-back programme
Nuremberg, 14 October 2008 - From today's perspective, Leoni AG no longer
expects to attain the targets set for the 2008 financial year in full. The
Management Board now projects sales of at least EUR 2.9 billion (previous
forecast: at least EUR 3.0 billion) and earnings before interest and taxes
(EBIT) of between EUR 110 and 120 million (previously approx. EUR 140
million). Main reason for this revised forecast is that the Wiring Systems
division is expecting a distinctly weaker 4th quarter. It is to be feared
that the automotive industry will make further cuts in addition to the
scaling back or suspension of production already announced in the last two
weeks.
Noticeable decline in sales has been recorded now in the Wire & Cable
Solutions division as well, in particular in its segments automotive cables
and cord sets for electrical appliances. There is still a steady trend of
business though in most areas of this division. This is due to ongoing
strong demand for special cables, for instance in the capital goods
industry, in the petrochemical business and the medical equipment sector.
Besides lacking gross margins resulting from reduced sales, it has to be
expected that some writedowns on inventory in the Wire & Cable Solutions
division as at the 31 December 2008 reporting date will be required because
of the sharp drop in the price of copper in past weeks to the most recent
level of about EUR 4 per kilogramme. This, too, adds to the adjusted EBIT
guidance.
Leoni AG adjusts, in response to current developments, its flexible
processes for producing wiring systems, which are all made outside
Germany, to the changed conditions. The requirement for adjustments,
however, will be toned due to the fact that early in 2009 setting up
capacities for series production start-ups of new car projects will become
necessary.
Comprehensive interim reporting with more detailed statements will follow
with presentation of the 3rd quarter figures on 5 November 2008.
Furthermore, Leoni AG intends to launch a share buy-back programme. This
will involve buying back own shares in the Company of up to 10 percent of
share capital, equating to a maximum of 2,970,000 shares. The shares will
be bought back particularly for resale to third parties in the context of
acquiring businesses, parts of businesses or investing in companies. The
buy-back will be carried out via the stock market and will be funded from
the Group's operating cash flow.
By launching the programme the Management Board makes use of the Annual
General Meeting's authorisation of 15 May 2008 to buy back own shares. It
entitles the Company to buy back shares up to 10% of its share capital
until 14 November 2009, either via the stock market or by means of a public
offer to all shareholders. The per-share purchase price must not exceed by
10% or fall more than 50% short of the average daily trading
volume-weighted closing prices of the share on the three trading days in
the XETRA trading system of the Frankfurt Stock Exchange preceding the
respective purchase.
If the authorisation to buy back own shares was to be replaced at the next
Annual General Meeting on 14 May 2009 by fresh authorisation, the share
buy-back could be continued on the basis of such new authorisation.
The buy-back will be carried out in appropriate application of Commission
Regulation (EC) no. 2273/2003 dated 22 December 2003. The announcements
concerning the share buy-back programme will be published on the Company's
website as well as in the electronic Bundesanzeiger and in Börsen-Zeitung.
Contact for journalists:
Sven Schmidt
Public & Media Relations
Phone +49 (0)911-2023-467
Fax +49 (0)911-2023-231
E-mail presse@leoni.com
Contacts for analysts and investors:
Frank Steinhart/ Susanne Kertz
Investor Relations
Phone +49 (0)911-2023-203/ -274
Fax +49 (0)911-2023-209
E-mail invest@leoni.com
Contact:
Sven Schmidt
Leoni AG
Public & Media Relations
Tel: +49 (0)911 / 2023-467
E-mail: sven.schmidt@leoni.com
14.10.2008 Financial News transmitted by DGAP
=--------------------------------------------------------------------------
Language: English
Issuer: Leoni AG
Marienstraße 7
90402 Nürnberg
Deutschland
Phone: +49 (0)911 20 23-274
Fax: +49 (0)911 20 23-209
E-mail: invest@leoni.com
Internet: www.leoni.com
ISIN: DE0005408884
WKN: 540888
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart
End of News DGAP News-Service
=--------------------------------------------------------------------------
Copyright (c) 2007 Dow Jones & Company, Inc.