Leoni closes out fiscal 2010 with record sales
Preliminary figures underscore return to dynamic growth
Apart from a further increase in the copper price, the forecast figure of about EUR 2.8 billion was substantially exceeded thanks to a dynamic uptrend in demand from both the automotive industry and all other pertinent markets up to the end of the year. The very strong increase in sales of cable harnesses and wiring systems for vehicles in the BRIC countries as well as the United States merits particular mention.
Likewise in terms of earnings before interest and taxes (EBIT) Leoni succeeded, with a figure of about EUR 131 million (previous year: loss of EUR 116 million), in clearly beating its most recent target of EUR 120 million. Further restructuring charges incurred in the fourth quarter are already absorbed in this result.
Leoni managed, furthermore, to significantly exceed its target of at least neutral free cash flow. Consequently, net debt could be reduced by around EUR 50 million according to preliminary figures, being again below equity at yearend for the first time since the onset of the economic crisis.
Leoni reaffirms its sales forecast of more than EUR 3.1 billion for fiscal 2011. The Company is confident of generating further, significant increases in earnings. The recent impairment of production and logistics at the facilities in Tunisia and Egypt will, as it stands today, not result in any material financial burden.
A comprehensive report with more detailed explanation will be provided upon presentation of the final fiscal 2010 figures at the balance sheet press conference on 23 March 2011 as well as the analyst and investor conference on 24 March 2011.