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Leoni Slips To Loss In Q2 - Quick Facts

Leoni (LEOGN) reported that its second-quarter net loss was 44 million euros, compared to net income of 41 million euros in the previous year. Loss per share was 1.35 euros compared to 1.29 euros in the prior year.

Group EBIT in the second quarter of 2019 was negative 14 million euros before VALUE 21 costs , compared to 62 million euros in the second quarter of 2018. The significant decline in year-on-year earnings was due to a weaker operating performance in the Wiring Systems Division and anticipated burdens of around 22 million euros for the project ramp-up in Merida.

EBIT for the second quarter of 2019 was also adversely affected by lower sales and the associated lack of contribution margin. The reported Group EBIT in the latest-quarter amounted to 30 million euros.

Quarterly sales declined to 1.25 billion euros from last year's 1.33 billion euros. Organic Group sales decreased 5.6 percent from last year, reflecting weaker demand.

The company expects sales for the financial year 2019 will be moderately below the previous year's level. Group EBIT in 2019 prior to exceptional items as well as VALUE 21 costs will be up to a negative mid double-digit million-euro figure.

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