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Media release05. August 2005

 
LEONI makes significant gains in both sales and earnings

Adverse effects of Rover administration absorbed in the second quarter

Nuremberg – LEONI AG of Nuremberg recorded substantial improvement in both sales and earnings in the second quarter of 2005. As expected, the consolidated external sales of EUR 396 million exceeded the previous year’s figure of EUR 310.7 million. Half-year sales were up about 25 percent year on year, from EUR 595.5 million in 2004 to EUR 745.9 million. Over 2005 as a whole, the Group can be expected to generate external sales of between EUR 1.43 and 1.5 billion (EUR 1.25 billion in the previous year). Earnings before interest and taxes (EBIT) rose to EUR 25.3 million in the second quarter of 2005, up from EUR 11.2 million in 2004. The exceptional charges of EUR 7.5 million resulting from the administration of British carmaker MG Rover have already been absorbed. On a cumulative basis, consolidated earnings before interest and taxes more than doubled compared with the previous year, amounting to EUR 42.5 million (EUR 20.7 million in 2004). Despite the charges associated with the Rover insolvency, operating earnings before interest and taxes for the whole of 2005 should come to at least EUR 95 million. Consolidate net income amounted to EUR 10.8 million in the first quarter of 2005 (EUR 5.4 million in 2004). After six months, the Group recorded net income of EUR 18.7 million, equating to an increase of about 72 percent (EUR 10.9 million in 2004).

Wiring systems business continues to grow


With external sales of EUR 231.6 million in the second quarter of 2005, the Wiring Systems Division achieved its best-ever quarterly sales (up from EUR 166 million one year earlier). The large projects launched in 2004 underpinned this growth of nearly 40 percent. LEONI provides wiring systems for the new Opel Astra /Zafira, Mercedes A Class, BMW 1 and 3 Series as well as Land Rover Discovery models. The figures add up to external sales of EUR 432.7 million for the first half of 2005, which is about 38 percent above the previous year’s figure of EUR 313.8 million. Earnings were up even more substantially thanks to the large rise in sales and the increasing productivity as the projects extend in time. Earnings before interest and taxes thus came to EUR 13.1 million in the second quarter of 2005 (up from EUR 3.9 million in 2004). In the first half, the division generated earnings of EUR 23.9 million (EUR 5 million in 2004).

Double-digit growth in the Wire & Cable Division


Despite difficult underlying conditions, the Wire & Cable Division succeeded in generating double-digit rates of gain in both sales and earnings in the period under report. External sales came to EUR 164.4 million in the second quarter of 2005 (EUR 144.7 million in 2004). For the first six months this adds up to sales of EUR 313.2 million (EUR 281.7 million in 2004), which corresponds to an increase of about 11 percent. About one third of this growth is attributable to the increased price of copper. The Automotive Cables, Special Cables and Cable Systems Business Units in particular made gains. Earnings before interest and taxes improved from EUR 6.8 million in the previous year to EUR 12 million in the second quarter of 2005. Half-year earnings were therefore up about 19 percent on the previous year to EUR 18.4 million (from EUR 15.5 million in 2004).

 
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