As expected, LEONI AG generated above-average gains in sales and earnings in the third quarter of the current year. Successful supply for new models such as the Opel Astra and the Mercedes A-Class, in particular, resulted in consolidated sales of EUR 317.8 million for the third quarter of 2004 (up from EUR 264.1 million in the same quarter of last year). On a cumulative basis to the end of September, the Company generated external sales of EUR 911.5 million, equating to a year-on-year increase of about 13 percent. At EUR 10.4 million, net income for the quarter more than doubled from the previous year’s EUR 5.1 million. This therefore adds up to consolidated net income for the first nine months of EUR 18.6 million (EUR 18.4 million in the previous year). Earnings before interest and taxes (EBIT) came to EUR 36 million at the end of September 2004 (EUR 43.5 million in the previous year). LEONI employed 28,177 people worldwide on 30 September 2004, thus increasing its workforce by about 40 percent compared with one year earlier.

Based on continued scaling up of production at its new wiring systems facilities and a significant recovery of demand for some of the new car models, LEONI expects an excellent fourth quarter of 2004 and has raised its forecast for the year as a whole slightly. Consolidated sales, for instance, are forecast to increase by 13 percent year on year. Given that no further, significant restructuring charges will be incurred in the fourth quarter and based on further enhancement of efficiency in the production of wiring systems, consolidated net income of more than EUR 30 million should be achieved.

The Wiring Systems Division expanded its capacity further and as planned in the third quarter. Production for the Mercedes A-Class and the BMW 1 Series has in the meantime successfully commenced and has already provided an initial contribution to external sales, which were up about 18 percent on the previous year’s figure of EUR 413.7 million to EUR 486.7 million. Earnings before interest and taxes for the third quarter were, at EUR 9.8 million, significantly above the first two quarters of this year. Major advance costs incurred by recruiting production staff and accumulating stocks of materials nevertheless resulted in lower nine-month earnings, of EUR 14 million, than in the previous year (EUR 22.8 million).

Under more upbeat market conditions than in the first half of 2004, the Cable Division increased its external sales by about 5 percent year on year, from EUR 334.9 million to EUR 350.2 million. Earnings before interest and taxes came to EUR 23.4 million on 30 September 2004 and thus to just under nine percent less than the previous year’s EUR 25.7 million. Increased sales of high-margin products and the price of copper exerting less of an impact in the third quarter of 2004 did, however, result in a significant improvement compared with the six-month earnings.

Having completed its restructuring, LEONI’s Wire Division is well positioned and recorded 22.5 percent sales growth on 30 September 2004 to EUR 74.6 million (from EUR 60.9 million in the previous year). The result before interest and taxes amounted to a loss of EUR 1.7 million, thus representing a significant improvement on the previous year’s loss of EUR 4.5 million. Excluding the expenses associated with shutting down the wire and strand production of LEONI Felisi in Italy LEONI Wire is already in profit territory.