Nürnberg – LEONI AG, Nürnberg, maintained its course of growth during the first six months of 2000. The turnover of the company which is a global systems and development supplier of wires, cables and wiring systems increased by 58 % to DEM 920 million (previous year: DEM 584 million). The profit on ordinary activities of the first half year of 2000 could slightly be improved with DEM 36.1 million compared to the previous year (DEM 35.3 million).

New subsidiaries contribute to continued growth of turnover
The influence of new subsidiaries consolidated for the first time in particular the one of the cable plants in Friesoythe and Brake which were acquired from Siemens at the end of 1999 has the strongest impact on the Cable Division. Turnover increased by 114 % to DEM 336 million during the first six months of 2000. But even without these subsidiaries consolidated for the first time a considerable growth rate of 34 % still remains.
The Wire Division benefits above all from the increased demand for highly qualified wires and strands due to which all the German and foreign subsidiaries are used to full capacity. The turnover of the first half year was at DEM 117 million which is nearly 26 % higher than in the previous year.
LEONI supplies wiring systems for successful car models
The successes of the car models supplied by LEONI have had a positive effect on the turnover of the Wiring Systems Division. It amounted to DEM 467 million in the first six months which was about 40 % higher compared to the one of the same period of 1999. This increase was based equally on organic growth as well as on new acquisitions. With regard to this the British wiring systems manufacturer Lucas Rists which was purchased from the TRW-Group at the beginning of this year and which was consolidated for the first time in March is of great importance. In order to improve the cost structure of this company, with its new name LEONI Wiring Systems U.K., the necessary transfer of production in particular to Romania and Egypt has been driven on more quickly than planned.

Investments in new machines, production facilities and future earnings
In order to meet future requirements LEONI continues to invest a lot: with DEM 45.3 million the total investment in the first six months was nearly as high as in the previous year (DEM 45.7 million). Apart from current investments in new machines and plants money was made available e.g. to a new cable plant in Slovakia, to the expansion of the Wiring Systems' locations in South Africa and Mexico as well as to company acquisitions such as Lucas Rists in Great Britain (now: LEONI Wiring Systems UK). Besides the construction of another cable plant in Poland was started in the meantime.
The continuous trend in growth and the utilization to full capacity of the locations of all company divisions also open up good prospects for LEONI for the second half year of 2000. The company therefore maintains its forecast of turnover of DEM 1.75 thousand million and expects profits to be nearly at previous year's level.