DGAP-News: Leoni AG: Fiscal 2007 figures exceed initial expectations - dividend increase planned
26.03.2008
Leoni AG / Final Results
26.03.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
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Leoni steers successful growth course
Fiscal 2007 figures exceed initial expectations - dividend increase planned
Nuremberg, 26 March 2008 - 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 percent and thus to a new record level of
EUR 2,366.8 million (2006: EUR 2,108 million). Despite substantial
pre-production spending on upcoming orders, the earnings before interest
and taxes of EUR 129.6 million nearly matched the previous year's high
level (of EUR 130.6 million). With an increase of about 9 percent, Leoni
generated a new high in net income of EUR 86.2 million (2006: EUR 79.3
million). Free cash flow before spending on acquisitions and the dividend
amounted to EUR 100.6 million (2006: 65.9) and was thus well up on
projections. Based on these good figures, the Management Board and
Supervisory Board will propose to the annual general meeting on 15 May 2008
an increase in the dividend to EUR 0.90 per share (previous year: 0.80).
Spending on property, plant and equipment as well as intangible assets rose
to EUR 93.7 million in the period under report (EUR 83.7 million in the
previous year) and was therefore again well ahead of the
depreciation/amortisation of EUR 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 (35,129 one year
earlier). This increase of about five percent 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.
Record sales and profitable subsidiaries
The Wire & Cable Solutions division continued on its course of expansion in
the 2007 financial year. Based on positioning in high-growth markets,
external sales were up by about 20 percent to the new record level of EUR
1,380.8 million (2006: EUR 1,154.0 million). Leoni's growth in this segment
involved special cables and ready-to-connect cable systems for a wide
variety of different industrial applications for example in the
petrochemical industry, machinery and plant engineering, robotics and
automation engineering as well as for complex infrastructure projects.
The Wire & Cable Solutions division's earnings before interest and taxes
rose by 7 percent to EUR 73.5 million (2006: EUR 68.6 million). The new
subsidiaries Leoni Kerpen and Leoni Studer proved to be especially
profitable.
The division employed 8,411 people on 31 December, which is about 8 percent
more than on the same day one year earlier (7,767). Alongside the growth
as a result of acquisitions, this included recruitment at various
facilities in Germany and China.
Preparations for news orders from the motor vehicle industry
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 EUR 986.0 million (2006: EUR 954.2 million). Wiring systems
and cable harnesses for Mercedes Benz, General Motors and BMW as well as
Ford were the main sales drivers.
Overall, preparations for extensive new and follow-on contracts from the
car and commercial vehicle industry characterised fiscal 2007. As expected,
the pre-production spending on stepped-up development work and expansion of
production capacity caused the Wiring Systems division's earnings to
decline. Strict cost management and the sales increase did, however, ensure
that the impact of this was less than planned. Earnings before interest
and taxes amounted to EUR 56.7 million (2006: EUR 61.1 million). This
includes expenses amounting to EUR 5.8 million for restructuring at various
facilities in Germany and abroad.
The Wiring Systems division recruited additional staff above all for
production in Mexico, Tunisia and the Ukraine and, at the end of the period
under report, employed 28,262 people, nearly 4 percent more than one year
earlier (27,199).
Forecasts for 2008 reaffirmed - significant earnings rise in 2009
The Wire & Cable Solutions division is expected to generate slight sales
and earnings increases in the 2008 financial year. Contributing to this
will be various larger orders including, among others, from the medical
equipment, computer and mechanical engineering industries as well as from a
number of transport and infrastructure companies. From today's perspective,
this uptrend should continue in 2009.
The Wiring Systems division will expand its volume of business
significantly in 2008, to approximately EUR 1.6 billion. The new subsidiary
Leoni Wiring Systems France (LWS France) will contribute about EUR 0.6
billion to this total. Underpinned by the scheduled ramp-up of numerous
large-scale projects, a fresh, considerable upsurge in the Wiring Systems
division's sales is likely in fiscal 2009. Earnings before interest and
taxes in 2008 should be up slightly on the previous year despite further
pre-production spending. LWS France cannot yet be expected to make any
significant earnings contribution because of integration costs and
write-downs associated with allocation of the purchase price. The work
involved in preparing for the new projects and integration of the new
French operations is likely for the most part to be completed in the
current year. Divisional operating earnings will therefore improve
significantly in fiscal 2009.
Based on the good prospects for both divisions, Leoni's consolidated sales
will increase to at least EUR 3 billion in 2008, with earnings before
interest and taxes rising to about EUR 140 million. At Group-level, sales
are expected to increase to about EUR 3.3 billion in 2009. Operating
earnings should rise disproportionately strongly.
Overview of Leoni's consolidated figures
2007 2006 Change
EUR million
Group external sales EUR 2,366.8 EUR 2,108.2 12.3%
million million
EBIT EUR 129.6 EUR 130.6 (0.8)%
million million
Net income EUR 86.2 EUR 79.3 8.7%
million million
Free cash flow before acquisitions and EUR 100.6 EUR 65.9 52.7%
the dividend million million
Investment in property, plant and EUR 93.7 EUR 83.7 11.9%
equipment as well as intangible assets million million
Equity ratio 32.9 % 35.1 % ?
Earnings per Share EUR 2.87 EUR 2.64 8.7%
Employees (as at 31 December) 36,855 35,129 4.9%
The 2007 annual report is available for download at www.leoni.com.
LEONI AG
Public & Media Relations
Phone +49 (0)911-2023-467
Fax +49 (0)911-2023-231
E-mail presse@leoni.com
Investor Relations
Phone +49 (0)911-2023-274
Fax +49 (0)911-2023-209
E-mail invest@Leoni.com
26.03.2008 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
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Leoni AG / Final Results
26.03.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
=--------------------------------------------------------------------------
Leoni steers successful growth course
Fiscal 2007 figures exceed initial expectations - dividend increase planned
Nuremberg, 26 March 2008 - 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 percent and thus to a new record level of
EUR 2,366.8 million (2006: EUR 2,108 million). Despite substantial
pre-production spending on upcoming orders, the earnings before interest
and taxes of EUR 129.6 million nearly matched the previous year's high
level (of EUR 130.6 million). With an increase of about 9 percent, Leoni
generated a new high in net income of EUR 86.2 million (2006: EUR 79.3
million). Free cash flow before spending on acquisitions and the dividend
amounted to EUR 100.6 million (2006: 65.9) and was thus well up on
projections. Based on these good figures, the Management Board and
Supervisory Board will propose to the annual general meeting on 15 May 2008
an increase in the dividend to EUR 0.90 per share (previous year: 0.80).
Spending on property, plant and equipment as well as intangible assets rose
to EUR 93.7 million in the period under report (EUR 83.7 million in the
previous year) and was therefore again well ahead of the
depreciation/amortisation of EUR 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 (35,129 one year
earlier). This increase of about five percent 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.
Record sales and profitable subsidiaries
The Wire & Cable Solutions division continued on its course of expansion in
the 2007 financial year. Based on positioning in high-growth markets,
external sales were up by about 20 percent to the new record level of EUR
1,380.8 million (2006: EUR 1,154.0 million). Leoni's growth in this segment
involved special cables and ready-to-connect cable systems for a wide
variety of different industrial applications for example in the
petrochemical industry, machinery and plant engineering, robotics and
automation engineering as well as for complex infrastructure projects.
The Wire & Cable Solutions division's earnings before interest and taxes
rose by 7 percent to EUR 73.5 million (2006: EUR 68.6 million). The new
subsidiaries Leoni Kerpen and Leoni Studer proved to be especially
profitable.
The division employed 8,411 people on 31 December, which is about 8 percent
more than on the same day one year earlier (7,767). Alongside the growth
as a result of acquisitions, this included recruitment at various
facilities in Germany and China.
Preparations for news orders from the motor vehicle industry
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 EUR 986.0 million (2006: EUR 954.2 million). Wiring systems
and cable harnesses for Mercedes Benz, General Motors and BMW as well as
Ford were the main sales drivers.
Overall, preparations for extensive new and follow-on contracts from the
car and commercial vehicle industry characterised fiscal 2007. As expected,
the pre-production spending on stepped-up development work and expansion of
production capacity caused the Wiring Systems division's earnings to
decline. Strict cost management and the sales increase did, however, ensure
that the impact of this was less than planned. Earnings before interest
and taxes amounted to EUR 56.7 million (2006: EUR 61.1 million). This
includes expenses amounting to EUR 5.8 million for restructuring at various
facilities in Germany and abroad.
The Wiring Systems division recruited additional staff above all for
production in Mexico, Tunisia and the Ukraine and, at the end of the period
under report, employed 28,262 people, nearly 4 percent more than one year
earlier (27,199).
Forecasts for 2008 reaffirmed - significant earnings rise in 2009
The Wire & Cable Solutions division is expected to generate slight sales
and earnings increases in the 2008 financial year. Contributing to this
will be various larger orders including, among others, from the medical
equipment, computer and mechanical engineering industries as well as from a
number of transport and infrastructure companies. From today's perspective,
this uptrend should continue in 2009.
The Wiring Systems division will expand its volume of business
significantly in 2008, to approximately EUR 1.6 billion. The new subsidiary
Leoni Wiring Systems France (LWS France) will contribute about EUR 0.6
billion to this total. Underpinned by the scheduled ramp-up of numerous
large-scale projects, a fresh, considerable upsurge in the Wiring Systems
division's sales is likely in fiscal 2009. Earnings before interest and
taxes in 2008 should be up slightly on the previous year despite further
pre-production spending. LWS France cannot yet be expected to make any
significant earnings contribution because of integration costs and
write-downs associated with allocation of the purchase price. The work
involved in preparing for the new projects and integration of the new
French operations is likely for the most part to be completed in the
current year. Divisional operating earnings will therefore improve
significantly in fiscal 2009.
Based on the good prospects for both divisions, Leoni's consolidated sales
will increase to at least EUR 3 billion in 2008, with earnings before
interest and taxes rising to about EUR 140 million. At Group-level, sales
are expected to increase to about EUR 3.3 billion in 2009. Operating
earnings should rise disproportionately strongly.
Overview of Leoni's consolidated figures
2007 2006 Change
EUR million
Group external sales EUR 2,366.8 EUR 2,108.2 12.3%
million million
EBIT EUR 129.6 EUR 130.6 (0.8)%
million million
Net income EUR 86.2 EUR 79.3 8.7%
million million
Free cash flow before acquisitions and EUR 100.6 EUR 65.9 52.7%
the dividend million million
Investment in property, plant and EUR 93.7 EUR 83.7 11.9%
equipment as well as intangible assets million million
Equity ratio 32.9 % 35.1 % ?
Earnings per Share EUR 2.87 EUR 2.64 8.7%
Employees (as at 31 December) 36,855 35,129 4.9%
The 2007 annual report is available for download at www.leoni.com.
LEONI AG
Public & Media Relations
Phone +49 (0)911-2023-467
Fax +49 (0)911-2023-231
E-mail presse@leoni.com
Investor Relations
Phone +49 (0)911-2023-274
Fax +49 (0)911-2023-209
E-mail invest@Leoni.com
26.03.2008 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
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