Leoni has posted first-half sales up 9% to EUR2.44bn (US$2.85bn) due to strong demand from the car, commercial vehicle and supplier industry as well as increasing copper prices.
If metal prices were to hold at the level of the first six months later in the year, full-year sales in 2017 will probably exceed the budgeted figure of EUR4.6bn (actual 2016: EUR4.43bn).
Operational improvements in the Wiring Systems Division as well as the sale of the Wire and Cable Solutions Division’s electrical appliance assemblies business completed in the second quarter of 2017 drove a stronger increase in profit than anticipated at the beginning of the year.
Deconsolidation of this business provided income of around EUR25m. After six months, consolidated Group earnings before interest and taxes (EBIT) more than doubled year on year to around EUR137m (first half 2016: EUR62m).
Given its better earnings performance in the first half, Leoni’s Board has decided to raise its EBIT forecast for the 2017 from the previous EUR180-EUR200m to EUR190-210m.