CORPORATE NEWS:
Leoni reaffirms forecast for fiscal 2004
Despite the persisting weakness of key markets, Leoni AG, Germany, has recently announced that the group managed to increase consolidated sales in the first quarter of 2004. At € 283.8 million, external sales were above the previous year’s figure (€ 274.7 million). After adjusting for exchange rates, the group achieved an increase of about 6%. As expected, there was a drop in earnings from continued operations before interest and taxes of about 47% to € 8.6 million (€ 16.3 million in 2003). This is especially attributable to the substantial advance spending for the Wiring Systems Division’s large-scale orders. After the successful start of series production for General Motors/Opel in the Ukraine, the main areas requiring capital investment in the first three months of 2004 were the new facilities in Romania and in Slovakia. Production of cables harnesses for DaimlerChrysler’s new A-Class, as well as for BMW’s 1 and 3 Series will start in the course of this year.
Although the German automotive industry had to contend with muted demand in the first few months of 2004, the Wiring Systems Division managed to increase its external sales compared with the same quarter of last year by almost 5% to € 146.8 million. This is due not least to the successful launch of the new Opel Astra, for which Leoni supplies the cable harnesses from the Ukraine. At € 1.6 million, the earnings for the first quarter of 2004 were in line with expectations.
Cable Division earnings have been affected by the high price of copper, and the Cable Division’s external sales of € 113.0 million almost matched the previous year’s figure. In terms of earnings before interest and taxes, the division had to cope with a 25% decrease to € 6.8 million (€ 9.1 million in 2003). This is attributable to weaker business involving special cables for the capital goods industry, as well as an unexpectedly sharp increase in the price of copper in the first two months of the current financial year. Menwhile, the trend of global demand for wire products, especially in China and in the United States, was highly encouraging for Leoni’s Wire Division. As a result, the external sales in the first quarter of 2004 came to € 24.0 million, roughly 19% above the previous year’s figure of € 20.2 million. This good operating result of the Wire Division was, however, largely cancelled out by costs arising from the shutdown of wire and strand production at Leoni Felisi in Italy.
Company: |
Leoni AG |
Country: |
Germany |
Fax: |
+49 911 202 3231 |
Email: |
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Website: |
www.leoni.com |