Leoni’s sales and earnings take hit from Covid-19

“The Covid-19 pandemic has hit the global automotive industry and its suppliers hard. Despite the immediate measures we have taken and the important progress made in implementing VALUE 21, our operating business was significantly impacted in the second quarter. We expect to have reached the low point in the current phase of the pandemic in April, and we have since seen a gradual recovery in our customers’ production. Nevertheless, the rest of the year remains extremely challenging.” says Aldo Kamper, CEO of Leoni AG, in apress release. Leoni’s business performance significantly impacted by Covid-19 pandemic, so much so that group sales were down 46% from the same quarter last year and ended up at EUR 673 million compared to EUR 1.24 billion. Second quarter EBIT before exceptional items, as well as before VALUE 21 costs, fell to EUR -96 million compared to a loss of EUR 14 million during the same period last year. Consolidated net result for the company’s second quarter amounted to EUR -123 million, compare to a loss of EUR 44 million during the second quarter 2019. The company is however reporting a gradual recovery following the shutdown and restart of production which is in line with expectations. Leoni says that it had largely a normalised output at around two-thirds of its plants by the end of June and that business in China already back to nearly pre-crisis level. The company says that the market recovery is currently in line with the assumptions of its restructuring plan. However, further development remains uncertain and depends on the resumption of production at its customers after the summer break