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Third quarter at Leoni: fight against mountain of debt, operational black numbers

The last one badly damaged Auto supplier Leoni remains operationally profitable, but still struggles against a mountain of debt. Net financial debt climbed to 1.671 billion euros at the end of the third quarter, compared to 1.501 billion euros at the same time last year, the company announced on Wednesday when it presented its quarterly figures. The equity ratio has fallen from 10.2 to 7.2 percent.

CEO Aldo Kamper was optimistic. Although supply chain problems and the associated temporary shortfalls in demand led to problems for Leoni customers, especially in the automotive industry, and impaired cash flow, the company is developing well. The sale of part of the cable division valued at 450 million euros, which has already been signed and should finally go on the stage at the beginning of 2022, will have a relieving effect.

“Leoni has stabilized further even under the considerably gloomy conditions in the third quarter,” said Kamper. He spoke of stop-and-go operations for some customers. Leoni has successfully faced the ongoing disruptions in global supply chains. “With full commitment and maximum flexibility,” he added.

Number of employees increased

In the first nine months, Leoni was able to increase its sales by 33.3 percent to EUR 3.818 billion compared to the same period of the previous year. The number of employees rose in the same period from a good 95,000 to a good 102,000 worldwide. Before interest and taxes, a profit of 76 million euros was posted in the first nine months, after a loss of 217 million euros a year earlier.

The bottom line is that the group result after nine months is still slightly negative at minus eight million euros in 2021 – after minus 242 million a year earlier. The costs for a restructuring program are included in this calculation. Leoni will, however, save 700 million euros annually in costs from next year. (dpa-AFX / gem)

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Lenny Li

I started to play with tech since middle school. Smart phones, laptops and gadgets are all about my life. Besides, I am also a big fan of Star War. May the force be with you!

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