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May 12th, 2009
- Reports
Nuremberg Germany - Leoni records sales decline and negative result in 1st Q 2009
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The intensified worldwide financial and economic crisis exerted the expected heavily adverse effect on the
performance of Leoni AG’s business in early 2009. Although the downtrend did level out somewhat in March following the extremely weak demand in the months of January and February, the consolidated sales for the first quarter of 2009 of this leading provider of cable systems to the automotive and other industries
were nevertheless down by 36 percent year on year to EUR 492.4 million (previous year: EUR 770.6 million). The reduced capacity utilization took earnings before interest and taxes (EBIT) to a loss of
EUR 45.6 million (previous year: profit of EUR 34.1 million), although the losses did come down significantly in March. Taking the budgeted finance costs and taxes into account, the Group reported a net loss of EUR 49.7 million versus net income of EUR 20.0 million in the first quarter of 2008.
To counteract this situation, Leoni launched a comprehensive cost reduction program in January that has been an exerting increasingly beneficial effect in all areas since March. Along with worldwide cutback of capital spending and material costs, the measures comprise above all adjustment of staffing capacity to the lower demand. For full press release use this
link
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