Financial results from Leoni (Nuremberg / Germany; www.leoni.com) have exceeded market expectations. According to preliminary figures, the cable and wiring systems specialist was able to almost double sales to EUR 1.3 bn in the second quarter of 2021 compared to the same period last year and was also back in the black operationally with an EBIT of EUR 27m (EUR -29m in Q2 2020). Leoni is scheduled to publish the final results for the second quarter of 2021 on 11 August 2021.

Free cash flow remained negative in the reporting period, however, at EUR -10m (EUR -244m in Q2 2020). Analysts had estimated the quarterly revenue of Leoni at EUR 1.27 bn, EBIT at EUR 2.7m and free cash flow at EUR -74.6m. The cable manufacturer is benefiting from the recovery in demand in the automotive and industrial sectors. There are also positive effects from an improved product mix and the restructuring measures so far.

Even though the rest of 2021 holds ongoing risks from the Covid pandemic, chaos in supply chains and the associated tight availability of key raw materials and components, Leoni raised its revenue and earnings forecast: for the year as a whole. The executive board said it now expects sales of at least EUR 5 bn and an EBIT before special effects of at least EUR 100m (EUR 48m in H1 2021). Free cash flow, on the other hand, is expected to deteriorate from the previous year’s figure of EUR -69m, as some special effects already recognised in profit or loss for 2020 in connection with the restructuring concept will have a cash impact in 2021. Effects from possible further divestments or acquisitions are not included in the forecast.