LEONI AG, based in Nuremberg, managed to generate gains in both sales and earnings in fiscal 2002 despite the tough economic conditions. The Company, which manufactures wire, cable and wiring systems and employs 18,500 people worldwide, recorded a 1.5 % increase in sales to EUR 1,114 million (up from EUR 1,097 million in 2001). Net income after adjusting for a positive extraordinary item resulting from a change in US accounting principles was up by more than 60 % to EUR 30.4 million (from EUR 18.7 million in 2001). In 2003, LEONI is focusing on making preparations for its major projects in the Ukraine and Romania, which will give a significant boost to both sales and earnings in 2004. Due to the heavy advance outlays that these projects require, fiscal 2003 net income will be down about 15 % year on year. Fiscal 2003 sales are set to roughly match the previous year’s figure.
LEONI boasts double-digit rates of growth in terms of the key earnings figures for 2002. Earnings before interest and taxes (EBIT) rose 32% to EUR 62.3 million (up from EUR 47 million in 2001) while earnings before interest, taxes, depreciation and amortisation (EBITDA) were up by 17.3 % to EUR 116.6 million (from EUR 99.4 million in 2001). Capital expenditure of EUR 83.8 million was 33 % down on the previous year’s figure of EUR 125 million.
Despite the downturn in the automotive business, LEONI managed to increase its sales by 6.7 % to EUR 599 million in the Wiring Systems Division. The division raised its earnings before interest, taxes, depreciation and amortisation by 56.2 % to EUR 52.8 million, up from EUR 33.8 million in 2001.
The poorer economic conditions retarded the very strong growth of the Cable Division in the preceding years appreciably in 2002. Yet, at EUR 433 million, sales almost matched the previous year’s level of EUR 438 million. The division raised its earnings before interest, taxes and depreciation/amortisation by 11 % to EUR 58 million, up from EUR 53 million in 2001.
The poor state particularly of the communications sector affected our Wire Division as well in 2002. As a supplier of high-end wire and strands for application in communications and information technology, LEONI depends directly on the order situation of the cable manufacturers. The Wire Division’s sales decreased by 16 % to EUR 82 million (from EUR 97 million in 2001), while earnings before interest, taxes, depreciation and amortisation were down from EUR 6.1 million to EUR 1.7 million.
