LEONI AG, based in Nuremberg, followed on from its positive fiscal 2002 results in the 1st quarter of 2003. With EUR 277.7 million, the Company generated sales close to the previous year’s figure of EUR 278.9 million. Pre-tax earnings (EBT) were up 5 percent year on year to EUR 12.5 million (from EUR 11.9 million in 2002). LEONI managed to raise net consolidated income by about 15 percent on the adjusted figure for the previous year (EUR 7.3 million) to EUR 8.4 million. Net consolidated income in the 1st quarter of 2002 included a beneficial, non-recurring item amounting to EUR 17 million resulting from an amendment to US accounting principles.

LEONI stands by its forecasts for the current financial year despite the weak economic setting. The Company projects that 2003 sales will match the previous year’s level and that net income will be 15 percent down year on year because of substantial advance outlays on major projects in the Wiring Systems Division. Starting in 2004, LEONI expects to record growth in both sales and earnings that is back well into double-digit rates.

The Wiring Systems Division generated sales of EUR 143.4 million in the first quarter of 2003 (the 2002 figure was EUR 146.4 million). Earnings before interest and taxes came to EUR 7.5 million, down from EUR 10.4 million in 2002. Advance outlays on major projects under the headings of "DaimlerChrysler", "General Motors" and "BMW" in Romania, in the Ukraine and in Slovakia were primarily responsible for this decrease.

The Cable Division managed to increase its sales by 2.3% on the previous year, from EUR 111.5 million to EUR 114.1 million. The Automotive Cables and Special Cables for Capital Goods business units were the main contributors to this performance. However, due to a lack of orders for high-margin products, especially so from the communications industry, the division was not quite able to match its earnings of the previous year. At EUR 9.1 million, earnings before interest and taxes were about 5% down on the 2002 result of EUR 9.6 million.

In the Wire Division’s business, demand in most product segments remains muted, as a result of which sales came in slightly below the previous year’s EUR 21.0 million with a figure of EUR 20.2 million. On the profit side, however, comprehensive restructuring and cost savings did produce a turnaround with the result before interest and taxes up from a loss of EUR 2.0 million to earnings of EUR 400,000.