Auto wiring supplier Leoni expects higher sales this year though expansion will slow. In fiscal 2011, earnings more than doubled on strong sales growth and the company increased its dividend.
RTT News noted the company had said it would sell Swiss subsidiary Leoni Studer Hard to Synergy Health, a provider of outsourced sterilisation services, for EUR47.6m. The divestiture provides irradiation services to the medical device, pharmaceutical and packaging industries.
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For fiscal 2011, the company booked net income of EUR156m, up from EUR67.2m the previous year.
EBITrose 81.7% and EBIT margin grew to 6.4% from 4.4% last year thanks to the sustained improvement in efficiency since the 2009 economic and financial crisis, the company said. Adjusted EBIT also improved 68.3% to EUR260.3m.
Sales rose 25.2% to EUR3.70bn thanks to strong demand in wireless & cable and wiring systems divisions.
Demand was heavier than assumed in virtually all markets resulting in high utilisation of production capacity, the company said. Growth was strongest in BRIC countries and the US.
Wiring systems benefited from sustained momentum in the global car and commercial vehicle industry as well as strong growth in China, Russia and the US.
Leoni expects fiscal 2012 EBIT in the range of EUR230-EUR280m compared to 2011 EBIT of EUR237.1m. Revenue is pegged at EUR3.8bn-EUR4bn.
