The Stuttgart-based Lapp Group reported a very positive growth in turnover in the financial year 2010/2011 (1. October to 30. September). The leading supplier of integrated solutions and branded products for cabling and connection technology has thereby further consolidated and strategically expanded its worldwide market position. The consolidated turnover rose by 34% to around €847 million (previous year €633 million). "This has been a very successful financial year for the Lapp Group. We have been able to close the gap with the record turnovers of the years before the crisis", reports Andreas Lapp, chairman of the board of Lapp Holding AG.

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Contributing to this growth above all has been the strong upturn in the world economy, the significant positioning of the Lapp Group in its core markets such as mechanical- and systems engineering and the presence of the Lapp Group in the Asian growth markets.

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The real turnover growth was 27%. 7 percent of this can be attributed to the sharp rises in copper prices. The number of employees increased from 2,800 to 3,000 worldwide. Pre-tax profits rose from €45.7 million to €68.2 million.

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Positive development in the regions & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;

The Lapp Group is divided into three regions: Europe, Asia and America. Please note: Europe, for Lapp, not only includes geographical Europe but also covers South America, Africa and the United Arab Emirates. North America includes the USA, Canada and Mexico while Asia covers Australia and New Zealand.

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With 73% of the group turnover, Europe continues to be the core market for the Lapp Group. The percentage growth was approximately 30%. In total the group achieved €620 million in this region (previous year €480 million). The strongest single market was Germany, which achieved a turnover of €308 million, thereby representing around 36% of the total turnover. This corresponds to a 33% rise. In Germany alone the Lapp Group employed more than 1,000 people, 80 more than in the previous year.

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The second most important sales region with 18% of total turnover is Asia. Here, the Lapp Group profited from the enormous economic growth of the Asian countries and the improved positioning of the company in these markets. The turnover was €153 million which corresponds to a rise of 61%.

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The turnover in North America has been equally positive but less dynamic. In this region (USA, Canada, Mexico), turnover was €73 million (previous year €58 million). This is an increase of 27% percent.

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Improved earnings and financial situation

Contributing factors to the €68.2 million pre-tax profit (previous year €45.7 million) have been growth in turnover along with Lapp Group’s efficient cost structure. Increased order volumes saw the Lapp Group increasing production capacities and number of employees throughout the financial year 2010/2011. Nevertheless, thanks to some structural adjustments, personnel and material costs in relation to the turnover were reduced from 36 to 31%. The absolute height of these costs rose from €227 million to €262 million. The significant fluctuation in the copper price throughout the financial year also had a major effect on turnover. In the annual average the DEL quotation (abbreviation for German electrolyte copper quotation for conductors/exchange-traded price of copper) was 667 Euro per 100 kilograms, around 25% higher than in the previous financial year. The equity ratio of the family company was 50% (previous year 48%). Net banking debts were fully discharged and as in the previous year, the company has notable bank deposits. "The Lapp Group is a company in good shape. Our equity ratio of around 50% is significantly higher than the average ratio of around 30% of the DAX-30 listed companies", says Dr Uwe Schwellbach, responsible for finance and controlling.

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The Lapp Group in figures			& nbsp;
& nbsp;	GJ 2009/2010	GJ 2010/2011	Change
Total turnover in million euros	633	847	& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; + 34%
Pre-tax profits in million euros	45,7	68,2	& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; + 49%
Employees worldwide	2.800	& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; 3.000	& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; + 200
Equity ratio in %	48%	50%	+ & nbsp;2%

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Increase in investments

The Stuttgart-based Lapp Group is on course for further growth. The company's investments of €21 million in the last financial year are nearly double those of the previous year (€12 million). "We want to make sure we can meet the increased demand and further strengthen our innovative capacity" explains Andreas Lapp. The focus of the investment has been in the area of production facilities.

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Investments in financial year 2010/11:

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; At the Diessenhofen site in Switzerland, the production capacities in injection moulding technology have been doubled for around €5 million. The new extension was opened in early 2011.

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; In Indonesia in the early summer of 2011 the new joint venture company, JJ-Lapp Cable SMI, began production. The previous activities of JJ-Lapp Cable Indonesia and PT Sinarmonas have been combined in the new company. The location is the production site of PT Sinarmonas. JJ-Lapp Kabel has a 70% share in Sinarmonas.

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Investment has also been made into existing production facilities. Contact GmbH for instance gained a new machining centre while a highly dynamic drag chain system was commissioned in the Stuttgart test centre along with a modern stranding machine in the Stuttgart cable factory. Capacity was also expanded in the Lapp Cable factory in the USA.

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Investments in financial year 2011/12:

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; The new company Coelco-Lapp Romania was founded a few weeks ago in Rumania. The company had previously been a long time sales partner.

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; In early summer of 2012 a new 30,000 square metre, ultra-modern logistics and service centre with 30 HGV loading ramps was opened in Ludwigsburg, Germany. The total investment amounts to around € 36 million.

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; This summer a second Lapp production facility goes into operation in Bhopal in India. The site covers 30 hectares. With three production buildings it will be the Lapp Group's largest production facility. Initially, around 100 employees will be working in Bhopal, rising to 400 at a later date. The total investment in the first phase is €7.5 million.

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Numerous innovations

The Lapp Group has further expanded its position in the area of renewable energies and set standards with innovations, for example in mechanical and systems engineering. The most important innovations have been:

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; The brand new LAPP HELIX for the area of e-Mobility. This is a "snail-design" charging cable. It offers significant savings in terms of space, weight, materials and costs.

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; For traditional mechanical and systems engineering, the new engine cable ÖLFLEX^® SERVO FD 796 CP was developed. In e-chains, the premium cable copes with up to 50m/s² acceleration. This corresponds to 5 times the acceleration of gravity.

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Outstanding application examples

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Lapp is key supplier to the Heidenheim world market leader Voith for the Paper division. The world's largest fine paper machine, which has been installed on the Chinese island of Hainan for the paper manufacturer Asia Pulp & amp; Paper (APP), is fitted with Lapp branded products. When installing the paper machine on-site, primarily ÖLFLEX^® CLASSIC power and control cables were fitted.

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; The Ziemann Group appointed Lapp to supply all underground cabling (42 tonnes of cable) for the building of a new brewery in Cambodia. & nbsp;

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; After the devastating oil disaster in the Gulf of Mexico, safety and environmental protection have become critical issues for the oil and gas industry. Lapp produced a 900 m long special cable for the cabling of safety valves for an oil pipeline off the Egyptian cost of the Mediterranean.

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Lapp supplied all the cabling for a new internal raw materials mixer for tyre manufacturer Continental.

- & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; The new stage-installation of the recently reopened Bolshoi Theatre in Moscow contains numerous e-chains and many kilometres of cable from Lapp Kabel. This was an order from Bosch Rexroth AB, who installed the stage equipment

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Outlook for the current financial year 2011/2012

Despite the uneven performance of the world economy, the Lapp Group started the new financial year 2011/2012 with slight growth. In the first four months, sales increases compared to the strong months in the previous year were 4%. This performance is also due to the reduced copper price which is now around €100 per 100 kilos lower than last year. Andreas Lapp: "Despite the Euro crisis we continue to expect a stable turnover performance." The company sees particularly high growth opportunities in Asia. Andreas Lapp: "There will always be markets with strong growth. We will also be present in these markets. This will secure jobs here in Germany and around the world." Overall around 200 new jobs have been created around the world in the current financial year. There is also a focus on the qualification and development of current Lapp employees through targeted development programmes, education and training.

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The LAPP HELIX charging system for electric vehicles offers significant savings in terms of space, weight, materials and costs.

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Pictures (jpg) and text (doc) available from www.lappkabel.de

Latest news/press

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About the Lapp Group:

Headquartered in Stuttgart, Germany, the Lapp Group is a leading supplier of integrated wire, cabling and connector products and solutions. Its offering includes electrical and fibre optic cables, industrial plug-in and screw connectors, cabling solutions, automation technology and technical accessories. Lapp Group’s core markets are in the mechanical and plant engineering and electronics manufacturing sectors, with rapid market expansion in the renewable energy, mobility and life science industries.

Lapp Group has remained in continuous family ownership since it was founded in 1959. In the 2010/11 financial year, it recorded total consolidated sales of 847 million euros. It employs some 3,000 people, operates 15 production sites and 41 sales companies and cooperates with approximately100 national partners worldwide.