Leoni reported a 6.9 percent decline in sales to 1.26 billion euros ($1.33 billion) in the first quarter compared with the same time period in 2021. The company had a first quarter loss of 17 million euros, compared to a profit of 29 million euros in the first quarter of 2021.
Free cash flow increased to 105 million euros from minus 100 million euros in 2021, Leoni said, largely because of the sale of its industrial solutions unit for a 125 million euro book gain.
The most important factor in the sales decline was the effect of inflation on salaries and materials costs, Chief Financial Officer Harald Nippel said. The war in Ukraine and volume, mix and price also played a role, Nippel said.
Volume was down due to the semiconductor shortage and the war in Ukraine, he added. The supplier is in “intensive discussion” about passing through inflation costs to customers, Nippel said.
Kamper said Leoni is working to duplicate its Ukraine capacity at other factories “as insurance for future developments in Ukraine.”
That investment in new capacity will be shared with customers, he said. “When things calm down completely and everything is back to normal we’ll talk with customers about how to deal with this additional capacity,” Kamper added.
“Leoni stands with Ukraine and we continue to believe in the future of the country,” he said.
