Based on preliminary figures, LEONI AG generated consolidated external sales from continued operations of EUR 1.08 billion in fiscal 2003, or about two percent less than the previous year’s EUR 1.1 billion. The sales of LEONI Flex (EUR 9 million in 2003 and EUR 11 million in 2002) are no longer included as the company was sold in December 2003. The fact that sales did not quite match the previous year’s figure is attributable to the impact of currency translation due to the strong euro. After adjusting for exchange rates, the Company generated an increase in sales of about two percent. At EUR 21.2 million, provisional net profit has turned out less than the figure budgeted at the beginning of 2003. In the previous year, net profit adjusted for the extraordinary effect of changes in accounting principles amounted to EUR 30.4 million. The sharper decline is due to the sale of French subsidiary LEONI Flex as well as exceptional charges associated with shutting down the wire and strand production of LEONI Felisi in Italy in the fourth quarter of 2003.

The Wiring Systems Division was not able to entirely detach itself from the weak state of the global automotive business. Moreover, some key customers’ impending model changes meant further loss of sales. In total, the Wiring Systems Division (excluding LEONI Flex) generated sales of about EUR 558 million (EUR 588 million in 2002), which is in line with the forecast decrease of roughly five percent. In the Cable Division, the strategic focus on four different markets and being present in the regions of most significant growth paid off. The division managed to increase its sales by two percent year on year to EUR 441 million (from EUR 433 million in 2002) despite the generally unsatisfactory economic situation. Fiscal 2003 was another difficult year for the Wire Division. It nevertheless almost managed to maintain sales at the previous year’s EUR 82 million with a figure of EUR 81 million. The persisting downtrend in demand called for further adjustment of capacity.