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Leoni Slips To Loss In Q3; Reiterates FY19 Outlook - Quick Facts

Leoni AG (LEOGN) on Wednesday reported third-quarter consolidated net loss of 88 million euros, compared to net income of 23 million euros in the previous-year quarter. Loss per share for the quarter was 2.69 euros, compared to earnings per share of 0.71 euros a year ago.

Group earnings before interest and taxes or EBIT for the quarter were negative 67 million euros, compared to positive 38 million euros in the prior-year period.

Before exceptional items as well as VALUE 21 costs, EBIT in the quarter was negative 15 million euros, compared to positive 38 million euros last year.

The negative result is due, among other things, to lower volumes in the company's two divisions, operational performance issues in WSD, salary inflation especially in Eastern Europe as well as planned ramp-up costs.

Third-quarter consolidated sales declined 4.2 percent to 1.16 billion euros from 1.21 billion euros last year.

The company noted that weaker demand led to an approximate 5 percent organic decline in Group sales compared to the year-ago period. Demand declined in both the automotive and industrial sectors.

Looking ahead to fiscal 2019, Leoni reiterated its outlook, and, in line with the market environment, expects sales for the fiscal year 2019 to be moderately lower than the previous year. Group EBIT in 2019 before exceptional items as well as before VALUE 21 costs is projected to be up to a negative mid double-digit million-euro figure.

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