Nürnberg – Despite the flagging economy in general, LEONI AG is on its way to exceed the 1 billion Euro mark as targeted. In the first quarter of 2001, the Group was able to reach a 24 per cent increase in turnover to about 278 million Euros (Previous year: 225 million Euros). Profit on ordinary activities could be increased by 25.4 % to 14.3 million Euros (Previous year: 11.4 million Euros). Profit for the year ranges with 8.3 million Euros about 40 % above the previous year’s profit (5.9 million Euros).

Increase of almost all key figures
Compared to the same period of the previous year, almost all important key figures such as Cash flow, EBT, EBIT and profit per share could be increased by a more than proportional rate to turnover. Besides acquisitions, internal growth has considerable contributed to an increase in all business divisions. Discounting the Lucas Rists takeover, consolidated since March 2000, and the companies consolidated for the first time in 2001, the increase in turnover still equals approx. 13 %.

Strong demand for wire in China
In spite the dip in the USA caused by the state of the general economy, the Wire Division managed to raise its turnover from 29 million Euros in Q1 2000 to 31 million Euros. However, the profit of the previous year could not be reached. The current weakness in growth in the communication networks sector is having an impact on the Wire Division in Europe and the USA. The situation is not expected to normalize until the 3rd or even the 4th quarter 2001 at the latest. The decline in turnover is compensated by the strong growth of the Chinese subsidiary which mainly produces wires and stranded conductors for the telecommunications and automotive industry.

Cable Division’s strong growth based on automation systems and telecommunications
The Cable Division mainly profits from the strong demand in the fields of automation systems and telecommunications. The division can report the strongest growth of all three divisions: Turnover increased by 27 % to 108 million Euros (Previous year: 85 million Euros). Profit could be increased at a more than proportional rate to turnover. The acquisition of a cable plant in Turkey, taken over at the end of December 2000, brought LEONI a big step closer to its goal of gaining a top world position in the field of automotive wires.

Strong demand for vehicles with LEONI wiring systems
The Wiring Systems Division increased its turnover by 25 % and reached 140 milli-on Euros. The demand for vehicle models equipped with wiring systems supplied by LEONI, continues to be stable. Thus, the company is not affected by the declining economic situation in the automotive industry. Earning before tax could slightly be increased despite price reductions, advanced project inputs and shrinking volumes for commercial vehicles in the NAFTA countries. LEONI AG expects for the positive development to continue. In addition, the Group’s competitive position as a systems and development supplier for wiring systems was strengthened by the foundation of the INTELDIS GmbH, a joint venture of Hella and LEONI.