As shown in LEONI AG’s interim report, consolidated external sales amounted to EUR 350 million on 31 March 2005. The figure is therefore up about 23 percent on the same quarter one year earlier (EUR 284.8 million) despite difficult market conditions. However, given the strong sales in quarters three and four of the previous year, it will not be possible to sustain this high rate of growth over 2005 as a whole. LEONI therefore reaffirms its sales forecast for fiscal 2005 of EUR 1.43 billion (up from EUR 1.25 billion in the previous year). Earnings before interest and taxes (EBIT) were up from EUR 9.5 million in the first quarter of 2004 to EUR 17.2 million in the same period this year, equating to growth of 81 percent. Consolidated net income increased by almost 44 percent, from EUR 5.5 million to EUR 7.9 million. In terms of operating earnings before interest and taxes (EBIT), the Company is a still aiming for a margin of seven percent over the year as a whole. However, the insolvency of LEONI’s customer MG Rover must be expected to incur exceptional charges of between five and seven million euros. It is not possible at this time to state the extent to which it might be possible to offset these charges during the current financial year.

The Wiring Systems Division increased its external sales by about 36 percent to EUR 201.1 million in the first quarter of 2005, up from EUR 147.8 million in the previous year. In particular, the major projects launched in 2003 and 2004, involving the wiring systems for new Opel, Mercedes, BMW and Land Rover brand models, contributed to this sales growth. This substantial increase in sales as well as measures to optimise production and logistics also boosted the earnings of the Wiring Systems Division. Earnings before interest and taxes thus came to EUR 10.8 million at the end of the first quarter (EUR 1.1 million in the previous year). Thanks to the aforementioned large-scale projects, the Wiring Systems Division enjoys a stable order situation that will ensure further growth until 2007.

Despite persistently difficult underlying conditions, the Wire & Cable Division generated 8.7 percent sales growth in the first quarter of 2005. Its external sales were up from EUR 137 million in the previous year to EUR 148.9 million. Earnings before interest and taxes were, at about EUR 6.4 million, down roughly 26 percent on the previous year’s EBIT of EUR 8.7 million. Along with the heavy pressure on prices especially of standard products, this is attributable to restructuring of LEONI Cable Assemblies N.V. in Belgium started at the end of 2004.