Nürnberg – LEONI AG, Nürnberg, is certain to reach itssales target of DM 1.75 billion in fiscal 2000 (1999 sales: DM 1.2 billion). In the past nine months, the corporate group achieved sales of DM 1.39 billion, representing an increase of nearly 60% over the previous year. The result of ordinary business activity increased only slightly over that of the previous year, from DM 51.9 million in the same time period in 1999 to DM 52.6 million in the year 2000.

Sales in the Cable Division more than doubled
The Cable Division continues to show highest growth rates, which in the year 2000 were largely attributable to the newly consolidated cable plants in Brake and Friesoythe. With 112% growth, this division achieved sales of DM 511 million (1999: DM 241 million). Yet even without these newcomers, growth in the cable sector was far above average at 30%. The Wiring Systems Division also continued to make great strides. As of 30 September 2000, it achieved sales of DM 702 million (1999: DM 494 million), 42% more than in the previous year. Here, too, subsidiaries included for the first time account for the largest share of this growth, over 30%. The British cable manufacturer LEONI Wiring Systems UK (formerly Lucas Rists) figured especially prominently in this development. The growth trend also continued in the Wire Division: Sales increased by over 30% compared with the previous year, rising to DM 177 million (1999: DM 135 million).

Profits Did Not Keep Pace With Sales
The development of profits failed to keep pace with the rapid growth of sales. This was due to increased downward pressure on sales prices, the rising cost of raw materials, and the significant costs of restructuring and of intermediate input in development required for future motor vehicle models.
Key areas of investment included Wiring System Division locations in South Africa, Mexico, Romania, and Hungary as well as a new cable facility in Slovakia. Total investment in the first three quarters of fiscal 2000 was slightly higher than in the previous year, at DM 73.6 million (1999: DM 72.3 million).

Demand for Future-Oriented Products Is Increasing
In light of the universally strong demand throughout every corporate division, LEONI looks forward to the conclusion of fiscal 2000 and to the year 2001 with a spirit of optimism. Demand for future-oriented products such as wires, stranded conductors, and cables for telecommunication, automation, transportation, medical technology, and aerospace engineering. The Wiring Systems Division has especially benefited from the favorable sales figures for the new Daimler-Chrysler C class, which has been on the market since May, and from the booming demand for sports cars by Porsche. Restructuring measures introduced to improve the unsatisfactory cost structures at LEONI Wiring Systems UK have also produced positive results.
LEONI AG, which now employs over 16,000 people throughout the world, is certain to reach its sales target of DM 1.75 billion and achieve a favorable result on a par with that of 1999.