March 2016, Nuremberg – Leoni, the leading European provider of cables and cable systems to the automotive sector and other industries, generated substantial sales growth to EUR 4.5 billion in 2015, which is a year-on-year increase of about 10 per cent. Of this gain, 5.5 per cent stemmed from the company’s own resources, with increased demand from both the automotive sector and numerous other industries.

“2015 was a challenging year for the Company. Sales performance was encouraging, but earnings were disappointing. We are giving top priority to resolving the problems in our Wiring Systems Division: we have applied measures to achieve a sustained increase in efficiency,” said Dieter Bellé, President & CEO of Leoni AG, at the group of companies' balance sheet press conference.

The Wiring Systems Division (WSD) increased its sales by 11 per cent to EUR 2,668 million during the year under report (2014: EUR 2,400 million). Sales to the export-heavyweight German carmakers recorded a particularly substantial increase. The WSD maintained its globalisation strategy by opening its fifth plant in Tieling, China, agreeing a joint venture in China and opening a production facility in Paraguay. The division furthermore succeeded in gaining the Asian carmakers Hyundai and Geely/Volvo as customers; in total, the division booked orders worth EUR 4.1 billion during the year under report.

The Wire & Cable Solutions Division (WCS) benefited during the period under report from the still heavy demand for automotive cables as well as good performance of the business involving cables for industry and the healthcare sector. Sales were up by 8 percent to EUR 1,835 million (previous year: EUR 1,704 million). Having opened two new automotive cable plants in China and Mexico during the year under report established the conditions for further growth in Asia and the Americas. Adverse foreign exchange rates, a lower copper price and write-downs on receivables exerted a diminishing effect on earnings – especially so in the 4th quarter. The division’s EBIT amounts to EUR 63.9 million (previous year: EUR 78.1 million).

In the 2015 financial year, Leoni again invested heavily in property, plant and equipment as well as intangible assets in the record amount of EUR 247.5 million (previous year: EUR 215.8 million). Key projects outside Germany involved setting up the fifth wiring systems plant in China and constructing the first production facility in Paraguay as well as commissioning two new automotive cable plants in China and Mexico as well as a special cables production line in Eastern Europe. In Germany, the Company invested above all in the second modernisation phase of its Wiring Systems Division headquarters in Kitzingen, expanding production of high-speed data cables in Friesoythe as well as purchasing the site for the Factory of the Future in Roth.

In essence, the 2016 financial year will be marked by improving efficiency in order to return to a course of profit-oriented growth. The Company continues to operate in a very promising setting and has a substantial order backlog in both of its divisions. Further development of structures and market activity will underpin the uptrend.