Leoni Slips To Loss In Q1
Leoni (LEOGN) reported that its first-quarter net loss was 132 million euros, compared to a profit of 44 million euros in the previous year. The latest-quarter result was negatively impacted by 37 million euros.
The company had to absorb exceptional items that weighed on the Group result by a non-recurring, total amount of 102 million euros. It has reassessed the WSD order book and its market prospects, due to weaker market for the automotive industry and its realignment towards strategic customer relationships as part of its VALUE 21 programme.
The reassessment led to non-cash write-downs in the first quarter of tangible and intangible assets by 67 million euros as well as to provisions of 35 million euros primarily for losses expected on existing orders in the future, which could become cash relevant over a period of several years.
In addition, there were increased personnel and freight costs related to the project ramp-up at the new production facility in Merida, Mexico, at the start of the year.
Leoni expects a further negative EBIT-impact of about 20 million euros largely to be booked in the second-quarter of 2019.
Reported EBIT for the first quarter was a loss of 125 million euros compared to earnings of 63 million euros last year.
Sales for the quarter were 1.262 billion euros, down from 1.327 billion euros in the prior year.
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