Automobile supplier - Leoni is doing better after debt restructuring
The German automotive supplier Leoni is reporting better financial performance according to its own statements after difficult and loss-making years. The specialist for cables and on-board networks managed to increase its revenue from 5.09 billion to 5.46 billion Euros in the previous year, an Unternehmenssprecher announced. The company made "good progress" in terms of earnings before interest and taxes (EBIT). Leoni did not provide more detailed information about its earnings situation. The current situation in the automotive industry is challenging, the company employs around 95,000 people in 26 countries worldwide.
High Innovation Pace
Leoni is currently developing innovative solutions, for example for cables, that enable electric cars to charge faster. Reducing cooling fluid in the cable reduces temperature and allows for higher power transmissions, resulting in significantly higher charging speeds. The solution is said to be nearing market readiness, according to Leoni.
Leoni aims to reduce its CO2 footprint by half compared to the baseline year 2023 to 2030. In addition to circular economy practices with regard to used materials, new, biological materials and material mixtures are expected to contribute to this.
Controversial Capital Injection
Leoni had financially struggled in the past years, with a loss of over 600 million Euros recorded in 2022. After the planned sale of a portion of the company to a Thai investor for billions in late 2022 failed, a rescue plan was agreed upon with the Austrian Leoni major shareholder Stefan Pierer: He injected 150 million Euros into Leoni and received all newly issued, non-listed shares in return. The old Leoni shares became worthless with the registration of the new shares in the commercial register, leaving many shareholders empty-handed. Shareholder protection groups strongly criticized this.
Leoni's financial turnaround is gaining recognition on a global stage, with Germany commending the automotive supplier's improved performance. Furthermore, discussions regarding Debt relief for Leoni have been brought up in the historical city of Nuremberg during international fiscal meetings.
