CORPORATE NEWS:
Wiring systems projects give new growth impetus
Leoni Group, Germany, has recently announced that its external sales in the first half of 2004 posted an increase of about 9% to €593.7 million (previous year: €545.4 million). The successful start of production of the cable harness for the new Opel Astra was the principal contributory factor to this increase in sales. Further required advance spending on the construction of new facilities, as well as cost cutting measures in the wiring systems division weighed on Group’s earnings in the second quarter. With aggregate EBIT of €17.5 million, the result falls about 42% below the previous year’s 6-month EBIT of €30.4 million, as expected. Consolidated net income amounted to €8.2 million in the first half of 2004 (previous year: €13.3 million).
Scaling-up production at the new facilities in Slovakia and Romania will give substantial growth impetus in the second half of the year. The company expects its consolidated sales for fiscal 2004 to be at least 10% above the figure of the previous year. Earnings can also be expected to recover substantially in the second half of 2004. The measures to restructure Leoni’s wire division have almost been completed, and the wiring systems division already absorbed.
Company: |
Leoni AG |
Country: |
Germany |
Fax: |
+49 911 202 3231 |
Email: |
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Website: |
www.leoni.com |