“LEONI continued to stabilise despite the substantially cloudier conditions in the third quarter. We successfully confronted the persisting disruptions of global supply chains – with full commitment and great flexibility. The agreement on the sale of our Business Group Industrial Solutions at the beginning of October is another milestone on our path towards strategically focussing LEONI on the automotive industry and further financial recovery. Despite our progress to date, we will remain vigilant as the negative effects from the semiconductor crisis and disruption of supply chains will persist and continue to challenge us.” Aldo Kamper, CEO of LEONI AG
- Sales recovery continues; third quarter sale, seasonally characterised by the summer break and additionally affected by production stoppages among car manufacturers due to supply chain disruptions, up around ten percent year-on-year at € 1,169 million (previous year: € 1,064 million); consolidated sales for the nine-month period amounted to € 3,818 million (previous year: € 2,865 million).
- Overall, the production stoppages among car manufacturers, caused mainly by bottlenecks in the supply of semiconductors in the third quarter, increasingly affected the volumes of our Wiring Systems Division (WSD); in some cases LEONI’s production also continued to suffer due to shortages of input materials
- EBIT before exceptional items as well as before VALUE 21 costs well above pre-year figures with earnings of € 29 million (previous year: loss of € 8 million) in the third quarter and of € 117 million after nine months (previous year: loss of € 120 million)
- Free cash flow was clearly negative at minus € 87 million in the third quarter (previous year: positive € 64 million), with particularly the production stoppages among customers making it difficult to efficiently manage working capital; in the nine-month period, free cash flow of negative € 197 million (previous year: negative € 179 million)
- Strategic focus maintained: Agreement to sell key parts of the WCS Division’s industrial business signed at the beginning of October; closing of the deal expected in early 2022
- VALUE 21 update: annual gross cost savings potential of more than € 700 million from 2022 achieved as of 30 September 2021
SOURCE: Leoni
