Leoni AG / Key word(s): Forecast
12.10.2015 21:52
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Leoni revises forecasts for 2015 and 2016 due to unexpected adverse factors
and more subdued business prospects
Nuremberg, 12 October 2015 - Nuremberg-based Leoni AG (ISIN DE 0005408884 /
WKN 540888) determines a downtrend in earnings in the third quarter
following a very solid second quarter. The Q3 earnings before interest and
taxes (EBIT) of approx. EUR 30 million turned out significantly weaker than
anticipated. This was due to surprisingly heavy charges in the Wiring
Systems Division particularly in September when accelerated start-ups of
complex projects combined with an unexpected rise in unit output figures
resulted in increased costs and reduced efficiency. In addition, there were
premature ends to profitable projects. Furthermore, the structural measures
applied in the context of ongoing globalisation are not yet exerting the
intended effect. By contrast, the Wire & Cable Solutions Division's 3rd
quarter sales and earnings performance was on the whole in line with
expectations.
The weaker performance in the Wiring Systems Division can be expected to
continue to weigh on earnings in the fourth quarter. Leoni consequently now
projects that the earnings before interest and taxes (EBIT) of EUR 200
million forecast for fiscal 2015 will not be achieved. Consolidated sales
are still expected to be at a level of at least EUR 4.3 billion.
Nor does Leoni retain its targets set for the 2016 financial year. Although
the Company will continue to give top priority to raising profitability,
the aforementioned adverse factors in the Wiring Systems Division will
again weigh on earnings in the upcoming fiscal year. This will be
aggravated by losses of sales that are now expected and the consequently
missing earnings contributions: the Company's business prospects are being
affected by the worsened economic conditions in China and Russia, which
will probably lead to reduced demand, while US business with the commercial
vehicle industry as well as the amount of sales to some customers will
likely not be at the previously budgeted level. Leoni has therefore lowered
its sales forecast for 2016 from EUR 4.8 billion before to about EUR 4.6
billion now; the Company will be significantly short of the previously set
target of a 7 percent EBIT margin.
The Company is currently preparing a package of measures intended to ensure
the targeted profitability of the Wiring Systems Division. Leoni will
provide details of these measures and specific statements on the third
quarter as well as its guidance on 10 November, the date scheduled for
presentation of its interim report.
12.10.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Leoni AG
MarienstraÃe 7
90402 Nürnberg
Germany
Phone: +49 (0)911 20 23-234
Fax: +49 (0)911 20 23-382
E-mail: veroeffentlichung@leoni.com
Internet: www.leoni.com
ISIN: DE0005408884
WKN: 540888
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg,
Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: Leoni AG: Leoni revises forecasts for 2015 and 2016 due to unexpected adverse factors and more subdued business prospects
| Source: EQS Group AG