LEONI continues recovery in the second quarter – full-year outlook raised
- Leoni continues recovery: Consolidated sales well above the previous year’s weak figures due to Covid-19 with increases of 47 percent in the first half and 92 percent in the second quarter
- Significantly higher EBIT before exceptional items as well as before VALUE 21 costs; profit of € 87 million after six months (previous year: negative € 112 million) and € 48 million in the second quarter (previous year: negative € 96 million)
- Free cash flow of negative € 110 million in the first half of 2021 (previous year: negative € 244 million), particularly due to sales and copper price-driven increase in working capital; improvement to negative € 10 million in the second quarter, largely due to better earnings and expansion of factoring volumes
- Supply bottlenecks of critical components and materials and production disruptions among carmakers due to shortage of semiconductors weighed on the first half; further bottlenecks in global supply chains expected in the second half
- VALUE 21 update: annual gross cost savings potential of more than € 650 million from 2022 achieved as of 30 June 2021
- Progress with WCS carve-out: Sale of the WCS’ Leoni Schweiz AG units as well as the Data Communication and Compound business units based at Stolberg successfully closed in the first and second quarters, respectively; major parts of Business Group Industrial Solutions classified as ‘held for sale’ at the end of the second quarter
- Sales and earnings outlook raised following uptrend in the first half: a significant year-on-year sales increase to at least € 5 billion and a significant improvement compared to the previous year in EBIT before exceptional items as well as before VALUE 21 costs to at least € 100 million now expected for 2021; a significant year-on-year decrease in free cash flow still expected
Leoni performance overview
Q2/2021 | Q2/2020 | Change | H1/2021 | H1/2020 | Change | |
Sales | 1,296 | 673 | 92.5% | 2,649 | 1,802 | 47.0% |
EBITDA | 75 | (76) | >100.0% | 181 | (80) | >100.0% |
EBIT | 25 | (129) | >100.0% | 76 | (186) | >100.0% |
EBIT before exceptional items as well as before VALUE 21 costs (1) | 48 | (96) | >100.0% | 87 | (112) | >100.0% |
Consolidated net result | (9) | (123) | 93.0% | 19 | (190) | >100.0% |
Earnings per share [€] | (0.27) | (3.75) | 92.8% | 0.58 | (5.80) | >100.0% |
Free cash flow | (10) | (244) | 95.7% | (110) | (244) | 54.9% |
Capital expenditure | 40 | 69 | (42.7)% | 92 | 167 | (45.1)% |
Equity ratio [%] | 7.9 | 11.7 | -- | 7.9 | 11.7 | -- |
Employees as of 30 June [number] | 101,734 | 90,932 | 11.9% | 101,734 | 90,932 | 11.9% |
(1) This key figure represents adjustment of EBIT for exceptional, non-recurring factors to facilitate better comparability between the periods and interpretation of operating profitability. Exceptional items comprise significant impairment of goodwill, intangible assets, property, plant and equipment as well as other assets, major expenses for contingent losses on customer contracts, costs in preparation for carving out the Wire & Cable Solutions Division (excl. internal costs), refinancing costs (incl. consultant, bank and solicitor fees; apart from the costs that are attributed to interest expenses) as well as non-recurring factors related to strategic decisions and external additional expenses in connection with the Covid-19 pandemic (for example additional shuttle transport, protective clothing, face guards and disinfectant). Costs for the VALUE 21 programme comprise all the related restructuring and severance costs as well as third-party consultant fees.