Nuremberg –LEONI AG held its annual general meeting at Nuremberg’s Congress Center today, with more than 500 LEONI shareholders and shareholder representatives attending. In his address, Dr Klaus Probst, Chairman of the Management Board of LEONI AG, gave a review of a successful financial year: “After two years of extensive preparations, LEONI’s so far largest ever projects in its Wiring Systems Division provided the sales and earnings growth forecast for 2004.” The Company generated consolidated sales of EUR 1.25 billion and net income of EUR 33.2 million in the 2004 financial year. To enable the shareholders of LEONI AG to participate in this success, the Management Board and Supervisory Board proposed to the annual general meeting that shareholders approve payout of a dividend for fiscal 2004 of EUR 1.25, up from the previous year’s figure of EUR 1.15. The majority of LEONI shareholders voted in favour of this proposal.
Shareholders approve share split
The agenda also included adoption of the reclassification of the share capital of LEONI AG into 29,700,000 no-par-value shares (up from 9,900,000), which was carried by a majority of votes at the annual general meeting. In place of one share with a notional stake of three euros in the share capital there are now three shares with a proportional value of one euro. The aim is to raise the appeal of the LEONI share, especially to private investors, and therefore to increase its liquidity. The measure also brings the breakdown in share capital into line with the norm for market-listed companies.
LEONI expands rail transportation business
LEONI announced at the annual general meeting that it intends to step up its activity in the rail transportation (rolling stock) market. In order to be ideally prepared for this promising market, LEONI plans to transfer its business comprising special cables and cable systems for rolling stock into a sales and project management company to be established together with the corresponding business unit of Swiss cable manufacturer Studer Draht- und Kabelwerk AG. LEONI will hold 70 percent of the shares in this company, which, subject to the approval by the Cartel Office, is to begin operating before the end of this year. The joint venture company will offer all-in solutions for wiring rolling stock and, in so doing, benefit from the cable, assembly and systems expertise of LEONI Group as well as the particular materials and cable know-how of Studer Draht- und Kabelwerk AG.
