DGAP-Adhoc: Leoni recorded significantly reduced sales and earnings in the 4th Quarter 2008 due to the slump in demand in the automotive industry
04.02.2009
Leoni AG / Preliminary Results/Dividend
04.02.2009
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.
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Leoni recorded significantly reduced sales and earnings in the 4th Quarter
2008 due to the slump in demand in the automotive industry
Extensive cost cutting programme started - Plan to trim the dividend to EUR
0.20
Nuremberg, 4 February 2009 - Based on preliminary calculations, Leoni
generated sales of EUR 2.9 billion in the 2008 financial year. The
year-on-year sales growth of about 21 percent (EUR 2.4 billion in 2007) was
solely due to the acquisition of the former wiring systems division of
Valeo. The sales crisis in the automotive industry resulted in a decline of
consolidated sales in the 4th quarter of 2008 of about 25 percent on the
average of the first three quarters. Based on preliminary figures, the
specialist for wire, cable and wiring systems generated earnings before
interest and taxes (EBIT) amounting to EUR 55 million (2007: EUR 129.6
million). The company expects net income to be in the medium single-digit
millions (2007: EUR 86.2 million). It is planned to pay a reduced dividend
of EUR 0.20.
Leoni's most recently issued forecasts for fiscal 2008 were sales of
approximately EUR 2.9 billion and EBIT of about EUR 95 million. Due to the
dramatic slump in demand in the automotive industry and various other
market sectors in the 4th quarter 2008 the previously projected EBIT was
distinctly missed. Another and main reason for this variance was a negative
contribution to operating income amounting to approx. EUR 21 million coming
from an extremely sharp fall in copper prices in the same period of time
from EUR 4.57 per kilogramme to EUR 2.16 per kilogramme, which on its own
resulted in inventory writedowns.
The free cash flow after the dividend payout, acquisitions and share
buy-back will probably amount to a negative sum of EUR 58 million and will
result in net debt as of 31 December 2008 of EUR 531 million (2007: EUR
473). Despite the payout for the share buy-back (EUR 29 million) and the
strong decline in earnings a positive free cash flow of about EUR 14
million in the 4th quarter 2008 is expected. On the basis of the strong
decline in net income, the Management Board and Supervisory Board will
propose to shareholders at the Annual General Meeting on 14 May 2009 to
reduce the dividend to EUR 0.20 per share (2008: EUR 0.90).
Due to the persistent sales crisis in the automotive industry, Leoni
reduced the number of employees by approx. 3,000 to about 50,500 in the 4th
quarter 2008 already. At the beginning of fiscal 2009 substantial capacity
adjustments at the majority of facilities worldwide were implemented by
reducing weekly working hours, introducing short-time work as well as by
further personnel measures. At the same time an extensive cost cutting
programme was initiated at all works and central divisions.
The strong downward trend in the automotive industry expected for 2009
notwithstanding, Leoni feels itself to be well equipped for the future. The
current start-up of new car models - in particular in the small and compact
car segment as well as in the low and upper middle class - will lead up to
a partial suspension of the decline in sales and further increased market
share in Europe.
Today's announcement replaces the release of the preliminary figures that
was originally scheduled for the middle of February 2009. A comprehensive
report with more detailed statements will be provided upon presentation of
the final fiscal 2008 figures at the balance sheet press conference on 24
May 2009 as well as the analyst and investor conference on 25 May 2009.
Contact person 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
04.02.2009 Financial News transmitted by DGAP
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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 / Preliminary Results/Dividend
04.02.2009
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 recorded significantly reduced sales and earnings in the 4th Quarter
2008 due to the slump in demand in the automotive industry
Extensive cost cutting programme started - Plan to trim the dividend to EUR
0.20
Nuremberg, 4 February 2009 - Based on preliminary calculations, Leoni
generated sales of EUR 2.9 billion in the 2008 financial year. The
year-on-year sales growth of about 21 percent (EUR 2.4 billion in 2007) was
solely due to the acquisition of the former wiring systems division of
Valeo. The sales crisis in the automotive industry resulted in a decline of
consolidated sales in the 4th quarter of 2008 of about 25 percent on the
average of the first three quarters. Based on preliminary figures, the
specialist for wire, cable and wiring systems generated earnings before
interest and taxes (EBIT) amounting to EUR 55 million (2007: EUR 129.6
million). The company expects net income to be in the medium single-digit
millions (2007: EUR 86.2 million). It is planned to pay a reduced dividend
of EUR 0.20.
Leoni's most recently issued forecasts for fiscal 2008 were sales of
approximately EUR 2.9 billion and EBIT of about EUR 95 million. Due to the
dramatic slump in demand in the automotive industry and various other
market sectors in the 4th quarter 2008 the previously projected EBIT was
distinctly missed. Another and main reason for this variance was a negative
contribution to operating income amounting to approx. EUR 21 million coming
from an extremely sharp fall in copper prices in the same period of time
from EUR 4.57 per kilogramme to EUR 2.16 per kilogramme, which on its own
resulted in inventory writedowns.
The free cash flow after the dividend payout, acquisitions and share
buy-back will probably amount to a negative sum of EUR 58 million and will
result in net debt as of 31 December 2008 of EUR 531 million (2007: EUR
473). Despite the payout for the share buy-back (EUR 29 million) and the
strong decline in earnings a positive free cash flow of about EUR 14
million in the 4th quarter 2008 is expected. On the basis of the strong
decline in net income, the Management Board and Supervisory Board will
propose to shareholders at the Annual General Meeting on 14 May 2009 to
reduce the dividend to EUR 0.20 per share (2008: EUR 0.90).
Due to the persistent sales crisis in the automotive industry, Leoni
reduced the number of employees by approx. 3,000 to about 50,500 in the 4th
quarter 2008 already. At the beginning of fiscal 2009 substantial capacity
adjustments at the majority of facilities worldwide were implemented by
reducing weekly working hours, introducing short-time work as well as by
further personnel measures. At the same time an extensive cost cutting
programme was initiated at all works and central divisions.
The strong downward trend in the automotive industry expected for 2009
notwithstanding, Leoni feels itself to be well equipped for the future. The
current start-up of new car models - in particular in the small and compact
car segment as well as in the low and upper middle class - will lead up to
a partial suspension of the decline in sales and further increased market
share in Europe.
Today's announcement replaces the release of the preliminary figures that
was originally scheduled for the middle of February 2009. A comprehensive
report with more detailed statements will be provided upon presentation of
the final fiscal 2008 figures at the balance sheet press conference on 24
May 2009 as well as the analyst and investor conference on 25 May 2009.
Contact person 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
04.02.2009 Financial News transmitted by DGAP
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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
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