Nuremberg – LEONI AG of Nuremberg generated consolidated external sales of EUR 388.2 million in the 3rd quarter of 2005, about 22 percent more than in the same quarter last year (EUR 318.4 million). Consolidated external sales thus amounted to EUR 1,134.2 million after nine months, equating to a year-on-year increase of about 24 percent (from EUR 913.8 million). As the report of LEONI, manufacturer of wire, cable and wiring systems, on the first three quarters shows, management therefore regards its forecast for fiscal 2005 sales of about EUR 1.5 billion as substantiated (EUR 1.25 billion in the previous year).
Earnings before interest and taxes (EBIT) amounted to EUR 28.2 million in the third quarter of 2005 (EUR 19.9 million in 2004). In total for the year to 30 September 2005, consolidated earnings before interest and taxes came to EUR 70.7 million, i.e. more than 74 percent above the previous year’s figure of EUR 40.6 million. Operating earnings before interest and taxes for the whole of 2005 should thus amount to more than EUR 95 million even when including the charges associated with the insolvency of Rover.
Consolidated net income amounted to EUR 15.5 million in the third quarter of 2005 (EUR 11.5 million in 2004). In total for the year to 30 September 2005, the Group generated net income of EUR 34.3 million, equating to an increase of about 53 percent (EUR 22.4 million in 2004).
Wiring Systems Division grows by more than 30 percent
As expected, the Wiring Systems Division made the larger contribution to this growth. It recorded external sales of EUR 646.4 million on 30 September 2005. Compared with the same closing date last year (EUR 489.0 million) this represents an increase of more than 32 percent, which is attributable to business not only with carmakers, but also with component suppliers and especially also with commercial vehicle manufacturers. Thanks to an increase in productivity relating in particular to the large-scale orders for wiring systems for new car models, production of which commenced as recently as 2004 and early 2005, earnings before interest and taxes (EBIT) for the first nine months were up from EUR 15.4 million in 2004 to EUR 40.6 million in 2005.
New businesses will boost the Wire & Cable Division
The Wire & Cable Division likewise made substantial gains, recording external sales of EUR 487.8 million for the first nine months. Compared with the previous year (EUR 424.8 million), this equates to an increase of nearly 15 percent. Earnings before interest and taxes (EBIT) in the same period were up 20 percent from EUR 25 million on 30 September 2004 to EUR 30 million on 30 September 2005.In the period under report, LEONI acquired Ulm-based neumatic Elektronik + Kabeltechnik GmbH, an assembler of special cables that extends its product portfolio. The same applies to advintec GmbH, a joint venture that LEONI set up together with Cimlec Industrie S.A. of France. advintec will provide robot systems and robot components that are configured ready for operation, as well as a comprehensive assembly and maintenance service. Furthermore, L&S Transportation Systems GmbH based in Röttenbach, a joint venture of LEONI and the Swiss company Studer Draht- und Kabelwerke AG, has been active in the rolling stock engineering market since October 2005. Finally, LEONI has acquired all the shares in Kerpen GmbH & Co. KG of Stolberg, a leading manufacturer in Germany of cables and cable systems for data communications as well as of special cable solutions for industry. Subject to approval by the Cartel Office, the acquisition takes effect on 1 October 2005. Not only will these new businesses provide further sales growth in the future, they will also reduce exposure to the automotive industry.
