Leoni on target in the first quarter of 2016
The Wiring Systems Division’s transformation process is on schedule – AGM approves dividend of EUR 1.00
Leoni generated consolidated sales of EUR 1,089.3 million in the period from January to March 2016 (previous year: EUR 1,108.8 million). Although the Company enlarged its business slightly from its own resources, sales were down marginally from the same quarter of the previous year because of the lower price of copper.
The Group's earnings before interest and taxes (EBIT) dropped to EUR 24.4 million as planned (previous year: EUR 35.2 million). As expected, heavy exceptional charges incurred by the critical projects that started in the Wiring Systems Division last year marked the first quarter of 2016. The comprehensive transformation process that was launched at the end of 2015 is running on schedule and will contribute to raising the division’s profitability on a sustained basis. Dieter Bellé, President & CEO of Leoni AG, reaffirmed the company’s forecast for the year before about 1100 shareholders and guests in attendance, saying that the cable specialist projects sales of EUR 4.4 billion and EBIT of EUR 105 million for 2016.
Shareholders at the Annual General Meeting approved the proposal of the Management Board and the Supervisory Board to raise the payout ratio for fiscal 2015 to about 42 percent. This means Leoni AG will pay its shareholders a dividend of EUR 1.00 (previous year: EUR 1.20) per share.
A comprehensive report on the results of the 1st quarter of 2016 will be released on 11 May 2016 as scheduled.