Leoni generates one third more sales and EBIT of EUR 23 million in the first quarter of 2010
Annual General Meeting: Shareholders commend resolute crisis management and agree to forgo a dividend
Before about 1,000 shareholders, shareholder representatives and guests at Nuremberg’s trade fair centre, Supervisory Board Chairman Dr Werner Rupp and CEO Dr Klaus Probst expounded on the past financial year, the most difficult in the Company's nearly 100-year history. “In 2009, we set the stage for a return to profit-oriented growth, adjusting production capacity and cost structures to the weaker economy on a lasting basis. The sales threshold for a break-even operating result stands at about EUR 2.1 billion,” Probst explained.
The shareholders expressed their satisfaction with the executives’ resolute crisis management – voicing their confidence with discharge of the Board members. Just as resolutely, a large majority of shareholders voted in favour of the proposal to forgo a dividend for loss-making fiscal 2009.
First quarter of 2010: EUR 10 million bottom line
The Company underpinned its very positive estimate of performance in the first months of the current financial year with presentation of provisional figures. For the period from January to March, they show a year-on-year increase in consolidated sales of 33.7 percent to EUR 658.5 million. Earnings before interest and taxes (EBIT) amount to EUR 23.0 million. Preliminary calculations put net income at EUR 10.2 million.
Forecast for the year: sales target of EUR 2.4 billion reaffirmed
Probst reaffirmed the forecast for the year involving sales of approx. EUR 2.4 billion, EBIT of at least EUR 50 million and a moderately positive net result. Given that it is still difficult to project into the second half of the year, he said that it is prudent not to raise the Company's guidance for the time being. Details on the performance of the divisions, net debt, cash flow and other key figures for the first quarter will be released on 11 May 2010 as scheduled.
Shareholders were pleased by the prospect that Leoni will develop into the most innovative provider of cables for environmental technologies. The Company put its “green” portfolio, which includes high-voltage wiring systems and charging cables for electric vehicles as well as cables for solar and wind energy plant, on display in the foyer of the venue. This hands-on display of sustainable technology was well received by visitors to the event.