The Management Board therefore concluded during its meeting today that the fraud will weigh in full on the earnings before interest and taxes (EBIT) of the third quarter and the year as a whole. Accordingly, Leoni has lowered its EBIT forecast for fiscal 2016 from previously EUR 105 million to now EUR 65 million. The Company will nevertheless forge ahead as planned with its operating business: the sales forecast for the 2016 financial year is unchanged at EUR 4.4 billion. Earnings will also, from a purely operating perspective, be on target.
The Management Board will adhere to its existing dividend policy of paying out about one third of consolidated net income – for fiscal 2016, taking into account the exceptional cost of the fraud case, which, as it stands right now, will not be tax deductible.
Further information on the calculation of EBIT is to be found in the Annual Report for fiscal 2015 on pages 147 and 238, which is available at www.leoni.com/en/financial-publications.
