Leoni AG Business Report FY2010

Business Highlights

Financial Overview

(in million EUR)
  FY2010 FY2009 Rate of change (%) Factors
Sales 2,955.7 2,160.1 38.7 -
EBIT 130.7 (116.3) - -
Wiring Systems Division
Sales 1,634.2 1,224.6 33.5


EBIT 74.3 (78.5) - -

Wiring Systems division
-The Wiring Systems Division benefited more than average in 2010 from the strong recovery of demand in the worldwide motor vehicle industry and increased its external sales by more than 33 percent to 1,634.2 million euro.

-Business in China, where sales roughly tripled, was especially good. In China LEONI supplies both local and foreign carmakers for instance with cable harnesses and wiring systems for the new models of General Motors’ global compact platform, the Mercedes C Class and E Class as well as the Vito and Viano vans.


-The Company announced its first project for a Japanese car manufacturer. The company will supply cable harnesses for the Nissan X-Trail to be locally produced for the Russian market. In November 2010, Leoni will take up production of several 10,000 cable harnesses each year for the vehicle at its Gorodets site in Russia. The contract adds up to an additional double-digit million Euro sales volume per year until at least 2014. (From a press release on October 28, 2009)

-The Company has signed a contract with Tata Cummins Limited to supply engine cable harnesses. The company will also provide the complete high-voltage wiring system for the electric version of the small Tata Ace van. (From a press release on May 11, 2010)


R&D Expenditure

(in million EUR)
  FY2010 FY2009 FY2008
Overall 75.9 71.1 88.3

Investment Activities

Capital Expenditure

(in million EUR)
  FY2010 FY2009 FY2008
Wire & Cable Solutions Division 43.4 37.1 53.1
Wiring Systems Division 57.5 41.6 93.6
Company's Total Capital Expenditure 103.1 83.2 336.6

-The Company acquired the plant in Beius in Romania from US-based AEES Power Systems Group effective April 1, 2010. AEES decided to divest the manufacturing assets as part of restructuring of its European operations. The Beius site engages in the production of cable harnesses for batteries and chassis for commercial vehicles. The additional business is expected to generate up to nearly 10 million euros per year. (From a press release on May 4, 2010)

-The Company opened its first wiring systems manufacturing facility near Pune in India in December 2010. The facility commenced supply of diesel engine harnesses to Tata Cummins Ltd. Tata Cummins is a joint venture between India-based Tata Motors Limited and U.S.-based Cummins Engine Company Inc. The facility area is currently around 1,300 square meters with the potential to expand to more than 6,000 square meters. The number of employees is expected to reach around 240 employees by the end of 2011. (From a press release on January 12, 2011)