Preliminary figures for the 2019 financial year: Leoni burdened by exceptional items in the fourth quarter – full year sales and EBIT before exceptional items as well as before VALUE 21 costs in line with forecast, free cash flow noticeably better
Based on current findings, the Executive Board today decided that a provision for expected losses from an onerous contract of around EUR 80 million is necessary. This is a result of changed conditions related to a major project in the Wiring Systems division with an order period end of 2016. The formation of this provision impacted the result for the fourth quarter of 2019. Losses could become cash-effective in the course of 2021 and over a period of several years thereafter. In addition, non-cash write-downs of assets of EUR 20 million impacted the divisional result of the Wire & Cable Solutions division.
The preliminary reported Group earnings before interest and taxes (EBIT) for the full year was burdened by exceptional items as well as VALUE 21 costs amounting to a total of EUR 318 million (Q3/2019: EUR 173 million) resulting in reported EBIT of EUR -384 million (financial year 2018: EUR 144 million).
Available liquidity at the end of 2019 amounted to EUR 624 million (as per end of Q3 2019: EUR 583 million; 2018: EUR 1,001 million).
Explanations of and reconciliations with key financial figures used can be found in the Annual Report 2018 of Leoni AG (accessible at https://www.leoni.com/fileadmin/corporate/publications/reports/2018/annual_report_2018.pdf), particularly on pages 133, 159, 169f., 244.