Based on provisional calculations, Leoni generated consolidated sales of EUR 1,013 million and EBIT of about EUR 35 million in the third quarter. The principal reason for this weaker performance in terms of operating profit involves heavy, unplanned charges arising from new product start-ups in the Wiring Systems Division, which already exerted an adverse effect in the 2nd quarter. In total, exceptional costs reduced consolidated EBIT by approx. EUR 15 million in the 2nd and 3rd quarters.
With the countermeasures applied taking effect, these earnings-reducing factors did not recur in the month of September. Leoni expects 4th quarter performance to be on-budget. But it will not be possible to compensate for the reductions of EBIT suffered in the summer months.
The Company reaffirms its target of generating sales of approx. EUR 4.1 billion in 2014. Its medium-term forecast also remains unchanged with sales of EUR 5 billion and a 7 percent EBIT margin projected for 2016.
A comprehensive report on the results of the 3rd quarter of 2014 will be released on 11 November 2014 as scheduled.
