LEONI continues positive trajectory in the first quarter of 2021 – Initial WCS carve-out milestones reached
- Consolidated sales (€ 1.35 billion) well up on the previous year in the first quarter of 2021
- EBIT before exceptional items as well as before VALUE 21 costs was, with earnings of € 39 million, up substantially from the level of same quarter of the previous year (a loss of € 17 million) thanks to a sales increase and operational improvements
- Resolute implementation of our VALUE 21 performance and strategy programme; about € 600 million of the gross cost savings potential realised as of 31 March 2021
- As expected, negative free cash flow of € 100 million substantially below the previous year’s neutral figure, which benefited considerably at the time from sale-and-leaseback transactions; free cash flow in the first quarter of 2021 was weighed down by the trend in net working capital related to the operational recovery
- Progress made with respect to strengthening our portfolio by having closed the sale of the first WCS unit, namely LEONI Schweiz AG, at the end of March 2021
- Agreement signed with a consortium of buyers on sale of LEONI Kerpen GmbH’s low-margin business units based in Stolberg; more than 160 jobs could be saved by continuing to operate these units in the hands of new owners at the site
- Sales and earnings outlook for fiscal 2021 raised: despite the persisting Covid-19 pandemic and bottlenecks in our global supply chains, outlook for Group sales now lifted to a significant increase (previously only a low double-digit percentage range); EBIT before exceptional items as well as before VALUE 21 costs should also improve significantly and now reach at least the break-even point
Leoni performance overview
Group key figures | Q1 2021 | Q1 2020 |
Consolidated sales [€ million] | 1,353 | 1,128 |
EBITDA [€ million] | 106 | (4) |
EBIT [€ million] | 51 | (57) |
EBIT before exceptional items as well as before VALUE 21 costs (1) [€ million] | 39 | (17) |
Consolidated net result [€ million] | 28 | (67) |
Earnings per share [€] | 0.85 | (2.05) |
Free cash flow (2) [€ million] | (100) | 0 |
Capital expenditure [€ million] | 52 | 98 |
Equity ratio [%] | 7.8 | 15.7 |
Employees (as at 31 March) | 100,515 | 91,872 |
(1) This key figure is EBIT adjusted for exceptional non-recurring effects to allow a better comparison between periods and interpretation of the operating profitability. Exceptional items comprise material impairment of goodwill, intangible assets, property, plant and equipment as well as other assets, material 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), other non-recurring expenses incurred by strategic decisions as well as external additional expenses in connection with the Covid-19 pandemic (for example additional coach transfers, protective clothing, masks and disinfectants). Costs for the VALUE 21 programme comprise all the related restructuring and severance costs as well as external consultant fees.
(2) Prior-year figure adjusted (presentation change: interest paid and received is classified in full as a financing)