Leoni Raises 2010 Sales and Earnings Forecasts Significantly

Tuesday, Jul 27, 2010

Leoni AG of Nuremberg has raised its forecast for fiscal 2010. The Company now expects to generate sales of between EUR 2.6 and 2.7 billion and thus to achieve a year-on-year increase of between 20 and 25 percent. Earnings before interest and taxes (EBIT) are now put at about EUR 100 million. Leoni previously projected a sales rise of about 10 percent to EUR 2.4 billion with EBIT of at least EUR 50 million.

Following the strong first quarter, the trend in the second quarter was also surprisingly positive. Based on provisional calculations, Leoni generated sales of about EUR 748 million and EBIT of around EUR 34 million from April to June. The totals for the first half of the year therefore come to sales of around EUR 1.4 billion and EBIT of about EUR 57 million. Due to the improved macroeconomic conditions and specific sales projections for the months ahead, Leoni anticipates a far better than previously forecast trend of business in the second half as well.

The reasons for the better-than-expected 2nd quarter and the raised expectations for the 2nd half are a larger number of and more extensive orders from the automotive sector, as well as from other sectors such as the household appliance and rolling stock engineering industries. In regional terms, the primary sales drivers are Asia and North America, where Leoni’s European customers are recording strong sales increases.

More comprehensive reporting with further key figures will follow as scheduled on 10 August 2010 with presentation of the final business results for the second quarter.

Source: ENF.cn