Leoni AG again achieved significant growth in the 2007 financial year. Based on provisional figures, the wire, cable and wiring systems specialist increased its consolidated sales by about 12 percent to EUR 2,367 million (up from EUR 2,108 million in the previous year). Net income was raised by about 9 percent, reaching a new record level of EUR 86.2 million (2006: 79.3 million). At a figure of EUR 129.6 million, earnings before interest and taxes nearly matched the record level of fiscal 2006 (EUR 130.6 million). Leoni therefore met its most recently stated target despite extensive pre-production spending on new projects in the Wiring Systems division. In terms of free cash flow before spending on acquisitions and the dividend, the Company posted a figure of about EUR 96 million (2006: 59 million) and thus significantly exceeded expectations.

Leoni successfully expanded in its Wire & Cable Solutions division in 2007. The division increased its external sales by about 20 percent to EUR 1,381 million and thus set a new record (1,154 million in the previous year). Business increased especially with the prospering petrochemical industry and Leoni also made further gains with cable systems for complex infrastructure applications such as tunnels and airports as well as with fiber optic cables.

The external sales of the Wiring Systems division were up about 3.3 percent year on year in fiscal 2007, to EUR 986 million (from 954 million in 2006). Leoni benefited from the ongoing trend towards higher-end equipment on vehicles and thus towards complex wiring systems. Business grew above all with customers BMW and VW as well as with the commercial vehicle industry outside Germany.

From today’s perspective, consolidated sales should rise to at least EUR 3 billion in the 2008 financial year. This includes approximately EUR 600 million due to the acquisition of the French wiring systems manufacturer Valeo Connective Systems. In terms of earnings before interest and taxes Leoni forecasts an increase to about EUR 140 million, with Valeo Connective Systems in 2008 not yet making a noteworthy contribution to earnings due to integration costs that are likely to be incurred and impairment charges relating to purchase price allocation. From 2009, both divisions may then be expected to post significant increases in operating earnings.