Leoni, the cables and cable systems supplier, said it increased its consolidated sales by around 11% year on year to EUR1.21bn (US$1.31bn) in the first three months of 2017.
The company cited the “good order situation in both divisions and the unabatedly heavy demand from the global motor vehicle industry” for the rise.
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Earnings before interest and taxes (EBIT) rose from EUR24.4m in 2016 to EUR52.9m, boosting EBIT margin from 2.2% to 4.4%. It did, however, benefit from EUR5m of non-recurring income which was the payout from a fidelity insurance policy in connection with the fraud case uncovered in 2016.
Quarterly after tax earnings of the Leoni Group rose from EUR11.6m to EUR33.6m.
The Wiring Systems Division increased sales by about 12% to EUR731m in the first quarter of 2017. The division’s quarterly EBIT improved from EUR5.0m to EUR22.9m thanks to measures to enhance performance, plus restructuring.
The division in the quarter also booked several new orders in the electromobility segment, in which Leoni has a current order backlog of about EUR500m: among other contracts, German carmakers commissioned Leoni to produce the wiring for two ranges of fully electric premium cars and SUVs.
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By GlobalDataLeoni reaffirmed its full-year forecast: group-wide, sales are projected to increase by approximately 4.5% to about EUR4.6bn, while earnings before interest and taxes are projected to improve to between EUR180 and 200m (EUR78.1m).
