DGAP-Adhoc

LEONI generates EBIT before exceptional items as well as before VALUE 21 costs and FCF significantly above market expectations in 2nd quarter of 2021 and raises outlook for sales & earnings for 2021 - Seite 2

Against the background of the positive development in the first half of the year, the Board of Directors nevertheless decided today to raise its sales and earnings outlook. It now expects a significant year-on-year increase (2020: EUR 4.1 billion) in Group sales to at least EUR 5 billion and a significant year-on-year increase (2020: EUR -59 million) in EBIT before exceptional items as well as before VALUE 21 costs to at least EUR 100 million for the full year 2021 (previous expectations: significant year-on-year increase in Group sales and significant year-on-year improvement of EBIT before exceptional items as well as before VALUE 21 costs, which should reach at least break-even, for full year 2021). Positive impacts on sales are related to the continuation of the recovery in demand in the automotive and industrial sectors and the significantly higher copper price. Positive effects on earnings are expected from positive volume and mix effects as well as positive impacts from the VALUE 21 programme and the restructuring concept.

For free cash flow, the Board of Directors continues to expect a significant decrease compared to the previous year (2020: EUR -69 million). Among the reasons for this expected free cashflow development are the increase in net working capital due to the stronger than expected sales recovery and the development of the copper price as well as the fact that some exceptional items in connection with the restructuring concept were already booked in 2020 but will become cash-effective in 2021. An example in that context are the restructuring provisions booked for the restructuring at the Stolberg site. Effects from possible further divestments or acquisitions are not included in the outlook.

The final results of the first quarter of 2021 are scheduled to be published on 11 August 2021.


* The analyst consensus collected by Vara Research GmbH is used to determine the market expectations. The analyst consensus for the second quarter of 2021 collected as of 22 July 2021 includes the following figures: sales of EUR 1,267.7 million, EBIT before exceptional items as well as before VALUE 21 costs of EUR 19.7 million, reported EBIT of EUR 2.7 million and free cash flow of EUR -74.6 million.