PRESS RELEASE: Leoni sets new sales and net income highs
12.08.2008
Leoni AG / Half Year Results
12.08.2008
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 sets new sales and net income highs
Cable manufacturer stayed on course in the first half of 2008 - EBIT almost
at the previous year's level - forecast for the full year underpinned
Nuremberg, 12 August 2008 - The Leoni Group continues its expansion
unabated: The consolidated sales of this wire, cable and wiring systems
specialist climbed 35 percent year on year in the first half of 2008, to
the all-time high of EUR 1.59 billion (H1/2007: 1.18). The acquisition of
the Leoni Wiring Systems France Group (LWSF), the former wiring systems
division of Valeo, made a particular contribution to this growth.
Consolidated earnings before interest, taxes and depreciation/amortisation
(EBITDA) rose by 17 percent year on year to EUR 126.0 million (H1/2007:
107.6). Despite substantial pre-production spending on new contracts and
the impact of revaluation as part of allocating the price to purchase LWSF,
the consolidated earnings before interest and taxes (EBIT) of EUR 71.5
million were down only slightly from the previous year's EUR 73.1 million.
Consolidated net income was, due to a lower tax charge, up 3 percent to EUR
45.9 million (H1/2007: 44.6).
A highly successful second quarter formed the basis for this good
performance: from the beginning of April to the end of June 2008,
consolidated sales were up 39 percent on the second quarter of 2007 to EUR
820.0 million (Q2/2007: 590.5). EBIT held virtually unchanged quarter on
quarter at EUR 37.4 million (Q2/2007: 37.8), while consolidated net income
increased by 8 percent to EUR 25.9 million (Q2/2007: 23.9). On 30 June
2008, Leoni employed 53,284 people worldwide, i.e. 56 percent more than one
year earlier (34,156). In Germany the number of employees rose by 7 percent
to 4,184. The workforce outside Germany grew by 62 percent to 49,100
employees due above all to the LWSF takeover.
Good position in the wiring systems market
Sales in the Wiring Systems division increased significantly in the second
quarter of 2008 versus the same period in 2007, from EUR 243.9 million to
EUR 429.0 million. Along with integrating LWSF, Leoni benefited from its
good position in the market for small and compact cars, which is growing
worldwide, as well as in the comparatively stable luxury segment. Business
with the international commercial vehicle industry also again expanded
strongly. The division's sales increased to 840.1 million in the first six
months of 2008 (506.7 in the previous year). LWSF, which continued to
outperform expectations, provided EUR 327.3 million to this total. The
Wiring Systems division's EBIT of EUR 28.4 million for the first half of
2008 was down only slightly from the previous year's level of EUR 30.9
million. This result absorbed the impact of revaluation as part of
allocating the price to purchase LWSF as well as extensive pre-production
spending on new orders from the motor vehicle industry, which will go into
series production in 2008 and 2009.
Faster growth with Wire & Cable Solutions
The Wire & Cable Solutions division accelerated its expansion in the second
quarter of 2008, increasing its segment sales by 13 percent year on year to
EUR 391.0 million (Q2/2007: 346.6). Automotive cables as well as special
cables for petrochemical plant, solar technology and infrastructure
projects were in particular demand. From January to June 2008, the Wire &
Cable Solutions division's sales rose by 12 percent to EUR 750.5 million
(H1/2007: 670.3). The division's EBIT increased by 2 percent to EUR 44.7
million in the same period (43.9 in the previous year) despite
significantly higher raw material costs. Based on the consistently strong
demand, Leoni is investing heavily in its Wire & Cable Solutions division
to set up and expand capacity in Germany, China, India and Switzerland,
among other locations. The Company is thereby meeting the preconditions for
its new major contracts such as the ones involving the wiring of the
Gotthard Base Tunnel and supply for the aircraft manufacturer Airbus.
Forecast for the year as a whole reaffirmed
The good business performance of the first six months underpins the Leoni
Group's projections for the year as a whole: Based on increases in both
divisions, consolidated sales should rise to at least EUR 3 billion in
2008, with consolidated EBIT improving to about EUR 140 billion. Leoni is
watching the current economic trend closely and is prepared for an economic
slowdown, although the markets of importance to Leoni still, with few
exceptions, present themselves in a good state. President & CEO Dr Klaus
Probst underscored: 'Thanks to our broad international footprint, our
relatively limited presence in the US market and our strong position in
growth sectors we can continue on our expansion course even in a weaker
economic setting.'
Overview of Leoni's consolidated figures
EUR million Q2 2008 Q2 2007 Q1-Q2 Q1-Q2 Change Q1-Q2
2008 2007 08/07
Group external sales 820.0 590.5 1,590.7 1,177.0 35.1 %
EBITDA 64.8 54.9 126.0 107.6 17.1 %
EBIT 37.4 37.8 71.5 73.1 -2.2 %
EBIT excl. impact of 41.0 38.1 80.7 73.8 9.3 %
revaluation*
EBT 28.7 33.0 53.4 63.4 -15.8 %
Consolidated net 25.9 23.9 45.9 44.6 2.9 %
income
Capex (incl. 57.0 21.0 231.0 38.7 496.9 %
acquisitions)
Equity ratio 27.6 % 36.5 % 27.6 % 36.5% ?
Earnings per Share EUR 0.87 EUR EUR EUR 4.1 %
0.79 1.54 1.48
Employees (as at 30 53,284 34,156 53,284 34,156 56.0 %
June)
* Earnings adjusted for the impact of revaluation as part of allocating the
prices of the major acquisitions.
The interim report on the first half of 2008 is available for download at
www.leoni.com.
Leoni AG
Corporate Communications
Dr Bernd Buhmann
Phone +49 (0)911-2023-323
Fax +49 (0)911-2023-231
Email presse@leoni.com
12.08.2008 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 / Half Year Results
12.08.2008
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 sets new sales and net income highs
Cable manufacturer stayed on course in the first half of 2008 - EBIT almost
at the previous year's level - forecast for the full year underpinned
Nuremberg, 12 August 2008 - The Leoni Group continues its expansion
unabated: The consolidated sales of this wire, cable and wiring systems
specialist climbed 35 percent year on year in the first half of 2008, to
the all-time high of EUR 1.59 billion (H1/2007: 1.18). The acquisition of
the Leoni Wiring Systems France Group (LWSF), the former wiring systems
division of Valeo, made a particular contribution to this growth.
Consolidated earnings before interest, taxes and depreciation/amortisation
(EBITDA) rose by 17 percent year on year to EUR 126.0 million (H1/2007:
107.6). Despite substantial pre-production spending on new contracts and
the impact of revaluation as part of allocating the price to purchase LWSF,
the consolidated earnings before interest and taxes (EBIT) of EUR 71.5
million were down only slightly from the previous year's EUR 73.1 million.
Consolidated net income was, due to a lower tax charge, up 3 percent to EUR
45.9 million (H1/2007: 44.6).
A highly successful second quarter formed the basis for this good
performance: from the beginning of April to the end of June 2008,
consolidated sales were up 39 percent on the second quarter of 2007 to EUR
820.0 million (Q2/2007: 590.5). EBIT held virtually unchanged quarter on
quarter at EUR 37.4 million (Q2/2007: 37.8), while consolidated net income
increased by 8 percent to EUR 25.9 million (Q2/2007: 23.9). On 30 June
2008, Leoni employed 53,284 people worldwide, i.e. 56 percent more than one
year earlier (34,156). In Germany the number of employees rose by 7 percent
to 4,184. The workforce outside Germany grew by 62 percent to 49,100
employees due above all to the LWSF takeover.
Good position in the wiring systems market
Sales in the Wiring Systems division increased significantly in the second
quarter of 2008 versus the same period in 2007, from EUR 243.9 million to
EUR 429.0 million. Along with integrating LWSF, Leoni benefited from its
good position in the market for small and compact cars, which is growing
worldwide, as well as in the comparatively stable luxury segment. Business
with the international commercial vehicle industry also again expanded
strongly. The division's sales increased to 840.1 million in the first six
months of 2008 (506.7 in the previous year). LWSF, which continued to
outperform expectations, provided EUR 327.3 million to this total. The
Wiring Systems division's EBIT of EUR 28.4 million for the first half of
2008 was down only slightly from the previous year's level of EUR 30.9
million. This result absorbed the impact of revaluation as part of
allocating the price to purchase LWSF as well as extensive pre-production
spending on new orders from the motor vehicle industry, which will go into
series production in 2008 and 2009.
Faster growth with Wire & Cable Solutions
The Wire & Cable Solutions division accelerated its expansion in the second
quarter of 2008, increasing its segment sales by 13 percent year on year to
EUR 391.0 million (Q2/2007: 346.6). Automotive cables as well as special
cables for petrochemical plant, solar technology and infrastructure
projects were in particular demand. From January to June 2008, the Wire &
Cable Solutions division's sales rose by 12 percent to EUR 750.5 million
(H1/2007: 670.3). The division's EBIT increased by 2 percent to EUR 44.7
million in the same period (43.9 in the previous year) despite
significantly higher raw material costs. Based on the consistently strong
demand, Leoni is investing heavily in its Wire & Cable Solutions division
to set up and expand capacity in Germany, China, India and Switzerland,
among other locations. The Company is thereby meeting the preconditions for
its new major contracts such as the ones involving the wiring of the
Gotthard Base Tunnel and supply for the aircraft manufacturer Airbus.
Forecast for the year as a whole reaffirmed
The good business performance of the first six months underpins the Leoni
Group's projections for the year as a whole: Based on increases in both
divisions, consolidated sales should rise to at least EUR 3 billion in
2008, with consolidated EBIT improving to about EUR 140 billion. Leoni is
watching the current economic trend closely and is prepared for an economic
slowdown, although the markets of importance to Leoni still, with few
exceptions, present themselves in a good state. President & CEO Dr Klaus
Probst underscored: 'Thanks to our broad international footprint, our
relatively limited presence in the US market and our strong position in
growth sectors we can continue on our expansion course even in a weaker
economic setting.'
Overview of Leoni's consolidated figures
EUR million Q2 2008 Q2 2007 Q1-Q2 Q1-Q2 Change Q1-Q2
2008 2007 08/07
Group external sales 820.0 590.5 1,590.7 1,177.0 35.1 %
EBITDA 64.8 54.9 126.0 107.6 17.1 %
EBIT 37.4 37.8 71.5 73.1 -2.2 %
EBIT excl. impact of 41.0 38.1 80.7 73.8 9.3 %
revaluation*
EBT 28.7 33.0 53.4 63.4 -15.8 %
Consolidated net 25.9 23.9 45.9 44.6 2.9 %
income
Capex (incl. 57.0 21.0 231.0 38.7 496.9 %
acquisitions)
Equity ratio 27.6 % 36.5 % 27.6 % 36.5% ?
Earnings per Share EUR 0.87 EUR EUR EUR 4.1 %
0.79 1.54 1.48
Employees (as at 30 53,284 34,156 53,284 34,156 56.0 %
June)
* Earnings adjusted for the impact of revaluation as part of allocating the
prices of the major acquisitions.
The interim report on the first half of 2008 is available for download at
www.leoni.com.
Leoni AG
Corporate Communications
Dr Bernd Buhmann
Phone +49 (0)911-2023-323
Fax +49 (0)911-2023-231
Email presse@leoni.com
12.08.2008 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.