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News of June 05, 2002

LEONI to prepare for new leap in turnover

Turnover and profit at and above previous yearıs level

Nuremberg ­ The Nuremberg based LEONI group was able to maintain its position in a difficult economic surrounding in the first three months of 2002. Taken from the first quarterly report according to US-GAAP, turnover amounting to 278.9 mill. Euros could be held at the same level as in the previous year (2001: 277.4 mill. Euros). The EBIT increased to 15.9 mill. Euros (2001: 15.0 mill. Euros) which is a plus of 6.0 % compared to the same period in 2001. The group profit for the financial year including effect of change in accounting principle (17.0 mill. Euros) reached 24.3 mill. Euros (previous year: 6.4 mill. Euros). While the order situation in the Wiring Systems and Cable Divisions continues to be positive, recession has had a stronger effect on the Wire Division. LEONI AG expects two moderate years in growth until the start of production for two major orders in 2004.

Wiring Division to report increase in sales with British customers

The Wiring Systems Division was able to increase its turnover in the first three months by about 5 % to 146.4 mill. Euros (2001: 139.3 mill. Euros). Increases could mainly be reached in the business with the British customers Land Rover and MG Rover as well as in the commercial vehicle and supplier sector. The division witnessed a much stronger improvement in its EBITDA compared to its turnover. EBITDA increased to 15.5 mill. Euros, 47.6 % more than in the previous year (10.5 mill. Euros). The number of staff has been expanded given the increased need in production capacities especially in Romania and Egypt.

Positive development in cables for the automotive and household appliances industry

The Cable Division can report a 3.6 % plus in turnover in the first three months of 2002 compared to the previous year, ranging at 111.5 mill. Euros (2001: 107.6). The EBITDA improved by 7.4 % to 14.6 mill. Euros (2001: 13.6 mill. Euros). Especially the automotive wires unit, in particular the facility in Mexico, have contributed their share to the positive development. The divisionıs business activities in China in the household appliance industry sector have also been expanded. Therefore the staff capacities at the Chinese sites have been raised. The total number of employees in the LEONI group currently ranges at 18,331 world-wide compared to 17,160 in the first quarter of 2001.

Wire Division to suffer from weak economic situation

The weak economic situation in the information and telecommunications sector has had a very strong effect on the Wire Division. Its main business are wires and stranded conductors used in the IT branch as well as in the likewise declining aerospace sector. The relatively high level of the previous year could therefore not be reached. Turnover amounted to 21.0 mill. Euros (2001: 30.4 mill. Euros) while the EBITDA decreased to 0.1 mill. Euros (2001: 2.4 mill. Euros).

Phase of consolidation before start of production for major orders

LEONI has scheduled a phase of consolidation with moderate growth for 2002 and 2003 before major orders received from DaimlerChrysler (Mercedes A-class) and General Motors (Astra/Zafira) are expectd to particularly bolster turnover from 2004 on. Preparations at the necessary for this purpose new sites in Romania and the Ukraine are according to plan. LEONI expects to see a 5 % increase in turnover for the current business year in view of the good order situation in the Wiring Systems and Cable Divisions and the predicted economic upswing in the next six months. The EBIT is expected to reach the level of 2001.

(May 29, 2002)

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