Nürnberg – In the first nine months of 1999, the Group turnover of the LEONI AG has been increased by 20 % compared to the previous year, to DEM 871 million (1998: DEM 723.4 million). This is stated in the just published interim report of the Group. Profit before taxes (EBT) has increased by almost 22 % in the Group, to DEM 49.2 million (1998: DEM 40.3 million) while profit after taxes has been increased to DEM 25.9 million. This means an increase of 28.4 % compared to the previous year. LEONI world-wide employed 11,730 staff, approximately 1,500 more than in 1998.
Strongest growth in Cable Division
The Wiring Systems Division, strongest in turnover, has once again contributed the biggest share to the overall results. The increase in turnover ranges at 19 % after the first nine months of the current year. Not considering the companies Nicolitch S.A., France, and LEONI Automotive do Brasil, Brazil, which have now been consolidated for the first time, turnover has increased by about 12 %.
The Cable Division has further improved with an increase to 48 %. The companies CWA Cable and Wire Assemblies N.V., Belgium, and Elocab Sonderkabel GmbH & Co. KG, Georgensgmünd, acquired at the end of last year and consolidated for the first time now have solely contributed to this growth. This is why the Cable Division can record the highest increase in profit. Due to the lower copper price turnover of the Wire Division is still below last year's turnover and because of the enhanced pressure on margins profit also ranges below the 1998 mark.
Investments in the erection and extension of foreign facilities
In the first three quarters, investments in the Group have amounted to a total of DEM 72 million. This is an increase of 29 % compared to the previous year. Investments have mainly been made in the erection and extension of foreign facilities in order to improve and secure the competitive position of the Group in the long run.
In Mexico, strong investments have been made in optimizing the local Wiring Systems facility and furthermore a new cable plant has been set up and put into operation. The two Slovakian production facilities of both the Cable Division and the Wiring Systems Division have been extended. The Wiring Systems Division has also started with the erection of a second plant in South Africa.
Further positive outlook
LEONI's business outlook is as positive as ever. No major decrease in terms of quantities can be expected in the Wiring Systems Division. In the Wire Division a slight increase in business has been noticeable in the last few weeks. The Cable Division has quite strengthened its position by acquiring the companies Leitungswerk Friesoythe, and Special Cables and Wires which used to belong to the Siemens Group.
Established strategy of the LEONI AG is the local supply of customers producing world-wide and the development of new regions. The next projects will be the supply of General Motors in Thailand, the erection of a new facility in Romania, the improvement of our market position in the NAFTA countries, the extension of the business unit automotive wires in Mexico, and eventually the setting up of a new cable plant in Poland.
Budgeted figures to be reached
Because of the very positive last three months of 1998, a slight decrease in growth rates for the whole year 1999 can be expected. However, the company is convinced that it will reach the budgeted figures announced for the year 1999. The Group turnover will exceed DEM 1.1 million and profit before taxes will amount to DEM 65 million.
