DGAP-News: Leoni continued to expand in the first quarter of 2008
07.05.2008
Leoni AG / Quarter Results
07.05.2008
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 continued to expand in the first quarter of 2008
Sales and EBITDA up significantly - consolidated net income near the
previous year's level - forecasts for 2008 reaffirmed
Nuremberg, 7 May 2008 - The Leoni Group grew further in the first quarter
of 2008. Compared with the same period of the previous year, consolidated
sales increased by more than 31 percent to EUR 770.6 million (Q1/2007: EUR
586.5 million) due above all to initial consolidation of the new subsidiary
Leoni Wiring Systems (LWS) France, the former wiring systems division of
Valeo. Earnings before interest, taxes and depreciation/amortisation
(EBITDA) rose by 16 percent to EUR 61.2 million (2007: 52.7) despite
extensive pre-production spending on new projects. Due to the expected
adverse effect on earnings of revaluation according to the purchase price
allocation of LWS France, earnings before interest and taxes after three
months of 2008 were, at EUR 34.1 million, down slightly on the previous
year's figure of EUR 35.3 million. With a figure of EUR 20.0 million,
consolidated net income likewise came close the level in the first quarter
of 2007 (EUR 20.7 million).
To facilitate further growth in the future, Leoni increased its spending on
property, plant and equipment as well as intangible assets significantly in
the period under report, to EUR 31.5 million (from EUR 15.4 million in the
previous year). This included expansion of capacity for production of
wiring systems in China, North Africa and Eastern Europe as well as setting
a new facility in Bautzen, Germany for refining polymer cables by means of
irradiation crosslinking.
On the 31 March 2008 reporting date, the Leoni Group had 52,179 employees
(34,721 in the previous year). This strong increase was the result mainly
of having integrated LWS France with 14,714 employees. In Germany the
workforce grew by 6 percent to 4,130 people and outside Germany by 56
percent to 48,049.
Earnings-oriented growth at Wire & Cable Solutions
In its Wire & Cable Solutions division, Leoni increased sales by 11
percent, from EUR 323.7 million in the first quarter of 2007 to EUR 359.5
million; growth generated in roughly equal halves from own resources and by
way of acquisitions. Thanks to its good position in profitable niche
markets and its high capacity utilisation, the division's earnings before
interest and taxes (EBIT) climbed by 21 percent in the first three months
of 2008, to EUR 21.9 million from EUR 18.2 million in the previous year.
Business involving special cables for the automotive industry as well as
infrastructure projects, petrochemical plant and automation performed
especially strongly.
Integration of Leoni Wiring Systems France successfully started
The Wiring Systems division benefited in the period under report from
initial consolidation of LWS France, which has been part of the Group since
2 January 2008, and thereby expanded the volume of its business
substantially to EUR 411.1 million (2007: 262.8). Integration of this new
subsidiary, which outperformed expectations in the first quarter of 2008
and generated sales of EUR 159.2 million, was the focal point of activity.
In addition, the division stepped up development work and preparations for
series production start-up of new projects, which will boost sales in the
years ahead. This pre-production spending as well as the adverse effect on
earnings of revaluation related to allocation of the price to purchase LWS
France resulted in the expected decline of the division's operating
earnings (EBIT) to EUR 13.4 million (2007: 16.7). Excluding the adverse
effect on earnings from revaluation pertaining to LWS France EBIT came to EUR
18.4 million.
Guidance for 2008 reaffirmed
Leoni is still confident about the whole of 2008 and still expects sales
and earnings increases in both divisions. On this basis, the Leoni Group is
still forecast to generate sales of at least EUR 3 billion as well as
earnings before interest and taxes of about EUR 140 million. 'Regardless of
economic researchers' increasingly cautious forecasts,' said Leoni CEO Dr
Klaus Probst, 'there are no signs of a downtrend in the markets of
importance to us.' Thanks to its very broad international footprint and a
widely diversified customer base, Leoni also considers itself to be in a
strong position that limits the company's exposure to economic fluctuation
in single countries or among individual buyer groups. Probst adds: 'This
enables us to generate growth even during economically difficult times.'
Overview of Leoni's consolidated figures
Q1/2008 Q1/2007 Change
Group external sales EUR 770.6 EUR 586.5 31.4 %
million million
EBITDA EUR 61.2 EUR 52.7 16.1 %
million million
EBIT EUR 34.1 EUR 35.3 -3.4 %
million million
EBIT excl. the effect of any revaluation* EUR 39.7 EUR 35.7 11.2 %
million million
Consolidated net income EUR 20.0 EUR 20.7 - 3.4
million million %
Investment in property, plant and EUR EUR 15.4 104.5
equipment as well as intangible assets 31.5million million %
Equity ratio 26.6 % 36.1 % ?
Earnings per Share EUR 0.67 EUR 0.69 -2.9 %
Employees (as at 31 December) 52,179 34,721 50.3 %
* Earnings excluding the effect of revaluation according to the purchase
price allocation of major acquisitions.
The interim report on the first quarter of 2008 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
07.05.2008 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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Leoni AG / Quarter Results
07.05.2008
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 continued to expand in the first quarter of 2008
Sales and EBITDA up significantly - consolidated net income near the
previous year's level - forecasts for 2008 reaffirmed
Nuremberg, 7 May 2008 - The Leoni Group grew further in the first quarter
of 2008. Compared with the same period of the previous year, consolidated
sales increased by more than 31 percent to EUR 770.6 million (Q1/2007: EUR
586.5 million) due above all to initial consolidation of the new subsidiary
Leoni Wiring Systems (LWS) France, the former wiring systems division of
Valeo. Earnings before interest, taxes and depreciation/amortisation
(EBITDA) rose by 16 percent to EUR 61.2 million (2007: 52.7) despite
extensive pre-production spending on new projects. Due to the expected
adverse effect on earnings of revaluation according to the purchase price
allocation of LWS France, earnings before interest and taxes after three
months of 2008 were, at EUR 34.1 million, down slightly on the previous
year's figure of EUR 35.3 million. With a figure of EUR 20.0 million,
consolidated net income likewise came close the level in the first quarter
of 2007 (EUR 20.7 million).
To facilitate further growth in the future, Leoni increased its spending on
property, plant and equipment as well as intangible assets significantly in
the period under report, to EUR 31.5 million (from EUR 15.4 million in the
previous year). This included expansion of capacity for production of
wiring systems in China, North Africa and Eastern Europe as well as setting
a new facility in Bautzen, Germany for refining polymer cables by means of
irradiation crosslinking.
On the 31 March 2008 reporting date, the Leoni Group had 52,179 employees
(34,721 in the previous year). This strong increase was the result mainly
of having integrated LWS France with 14,714 employees. In Germany the
workforce grew by 6 percent to 4,130 people and outside Germany by 56
percent to 48,049.
Earnings-oriented growth at Wire & Cable Solutions
In its Wire & Cable Solutions division, Leoni increased sales by 11
percent, from EUR 323.7 million in the first quarter of 2007 to EUR 359.5
million; growth generated in roughly equal halves from own resources and by
way of acquisitions. Thanks to its good position in profitable niche
markets and its high capacity utilisation, the division's earnings before
interest and taxes (EBIT) climbed by 21 percent in the first three months
of 2008, to EUR 21.9 million from EUR 18.2 million in the previous year.
Business involving special cables for the automotive industry as well as
infrastructure projects, petrochemical plant and automation performed
especially strongly.
Integration of Leoni Wiring Systems France successfully started
The Wiring Systems division benefited in the period under report from
initial consolidation of LWS France, which has been part of the Group since
2 January 2008, and thereby expanded the volume of its business
substantially to EUR 411.1 million (2007: 262.8). Integration of this new
subsidiary, which outperformed expectations in the first quarter of 2008
and generated sales of EUR 159.2 million, was the focal point of activity.
In addition, the division stepped up development work and preparations for
series production start-up of new projects, which will boost sales in the
years ahead. This pre-production spending as well as the adverse effect on
earnings of revaluation related to allocation of the price to purchase LWS
France resulted in the expected decline of the division's operating
earnings (EBIT) to EUR 13.4 million (2007: 16.7). Excluding the adverse
effect on earnings from revaluation pertaining to LWS France EBIT came to EUR
18.4 million.
Guidance for 2008 reaffirmed
Leoni is still confident about the whole of 2008 and still expects sales
and earnings increases in both divisions. On this basis, the Leoni Group is
still forecast to generate sales of at least EUR 3 billion as well as
earnings before interest and taxes of about EUR 140 million. 'Regardless of
economic researchers' increasingly cautious forecasts,' said Leoni CEO Dr
Klaus Probst, 'there are no signs of a downtrend in the markets of
importance to us.' Thanks to its very broad international footprint and a
widely diversified customer base, Leoni also considers itself to be in a
strong position that limits the company's exposure to economic fluctuation
in single countries or among individual buyer groups. Probst adds: 'This
enables us to generate growth even during economically difficult times.'
Overview of Leoni's consolidated figures
Q1/2008 Q1/2007 Change
Group external sales EUR 770.6 EUR 586.5 31.4 %
million million
EBITDA EUR 61.2 EUR 52.7 16.1 %
million million
EBIT EUR 34.1 EUR 35.3 -3.4 %
million million
EBIT excl. the effect of any revaluation* EUR 39.7 EUR 35.7 11.2 %
million million
Consolidated net income EUR 20.0 EUR 20.7 - 3.4
million million %
Investment in property, plant and EUR EUR 15.4 104.5
equipment as well as intangible assets 31.5million million %
Equity ratio 26.6 % 36.1 % ?
Earnings per Share EUR 0.67 EUR 0.69 -2.9 %
Employees (as at 31 December) 52,179 34,721 50.3 %
* Earnings excluding the effect of revaluation according to the purchase
price allocation of major acquisitions.
The interim report on the first quarter of 2008 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
07.05.2008 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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