Leoni generated record-level sales and earnings in the first quarter of 2011
Consolidated sales rose by 38 percent to EUR 910.7 million – EBIT almost tripled to EUR 61.4 million
The cables specialist increased its pre-tax earnings from EUR 13.0 million in the same quarter of the previous year to EUR 50.4 million and its consolidated net income from EUR 10.2 million to EUR 36.6 million. Free cash flow improved to a negative figure of EUR 8.2 million (previous year: outflow of EUR 61.1 million), representing a significantly better outcome compared to the first quarter results in previous years. Net debt thus increased only slightly versus the end of 2010 to EUR 458.3 million (31 December 2010: EUR 444.6 million).
Wiring Systems: boom in demand from the motor vehicle industry
Demand from international carmakers for Leoni cable harnesses and wiring systems increased further in the first quarter of 2011. The Wiring Systems Division’s external sales thus climbed by approximately 37 percent year on year during the period under report, to the record level of EUR 500.2 million (previous year: EUR 365.1 million). The division’s EBIT also amounted to a new high of EUR 35.2 million (previous year: EUR 9.5 million). Leoni increased the volumes supplied to almost all customers. There was a strong increase in business particularly in China and with the international commercial vehicle industry. Numerous new contracts will underpin the division’s good performance in the future, among them also highly promising serial production projects in the Business Unit Electromobility.
Wire & Cable Solutions growing worldwide
Leoni also generated quarterly records in its Wire & Cable Solutions Division, whose external sales for the period from January to March 2011 were up by about 40 percent on the same period in 2010 to € 410.5 million (previous year: EUR 293.4 million) while EBIT rose from EUR 13.5 million to EUR 26.0 million. There was a global boom especially in demand for automotive cables, propelled by the increasing need for special cables as well as cables for comfort applications such as infotainment and driver assist systems. In addition, Leoni strongly increased its business involving data cables, special cables for robotics and medical equipment as well as flat wires for the solar industry. Along with supplying product, providing related services is also playing an increasingly important role in new contracts, for example for robotics solutions in the automotive industry. Leoni is thereby strengthening its position as a system provider.
Workforce enlarged; capital investment increased
Leoni expanded its production capacity as planned in the wake of the sustained, favourable level of business. In total, the Group spent EUR 21.9 million in the first quarter of 2011, 34 percent or so more than in the same period of the previous year. Among others, facilities in Eastern Europe, North Africa and Latin America were enlarged. Group-wide, the number of employees rose by 980 in the first three months of 2011, to 56,136 people (31 December 2010: 55,156), with the workforce increasing by 122 in Germany and by 858 elsewhere.
Forecast: sales rise accompanied by disproportionately strong earnings growth
Based on the good performance in the first quarter and the still favourable business prospects, Leoni in mid April raised its forecast for fiscal 2011 as a whole. The Company estimates an increase in consolidated sales to about EUR 3.4 billion (previous year: EUR 2.96 million). The Wiring Systems Division is expected to provide about EUR 1.85 billion (previous year: EUR 1.63 billion) of this total, with the Wire & Cable Solutions Division contributing about EUR 1.55 billion (previous year: EUR 1.32 billion). From today’s perspective, consolidated EBIT will increase at a disproportionately strong pace, i.e. to EUR 210 million (previous year: EUR 130.7 million).
Leoni performance overview
Group key figures
Consolidated sales [€ mil.]
EBITDA [€ mil.]
EBIT [€ mil.]
> 100 %
Adjusted EBIT * [€ mil.]
> 100 %
EBT [€ mil.]
> 100 %
Net income [€ mil.]
> 100 %
Free cash flow [€ mil.]
Capital expenditure (incl. acquisitions) [€ mil.]
Equity ratio [%]
Earnings per share [€]
> 100 %
Employees (as at 30 March)
* Earnings adjusted for the impact of revaluation as part of allocating the prices of major acquisitions, restructuring, impairment of non-current assets, gains on business acquisitions and derivatives relating to business combinations.