Germany's Leoni scraps 2019 profit target, unveils job cuts
FRANKFURT, March 17 (Reuters) - German automotive cable and
wiring system specialist Leoni has abandoned a 2019
profit target it issued just last month, unveiled job cuts as
well as possible divestments and said its finance chief would
"The company is facing a continued challenging market
environment, particularly in China," it said on Sunday, adding
that demand from carmakers for its wiring systems had fallen
Leoni, which in February forecast 2019 earnings before
interest and tax of between 100 million and 130 million euros
($147 million), down from 144 million euros in 2018, said it
would no longer meet that target and would set a new goal.
As part of a restructuring plan it had already broadly
outlined last year, the company said it would cut about 2,000
jobs out of more than 90,000 globally at the group.
"The developments at the end of fiscal 2018 and especially
in the first two months of 2019 have made it clear that we must
act even faster and more decisively to bring Leoni back on
track," Chief Executive Aldo Kamper, who joined in September,
said in a statement.
He and his team would now consider all options for
businesses with annual sales of up to 500 million euros.
The corporate structure would be changed to a financial
holding company with two divisions that are managed on a
CFO Karl Gadesmann resigned with immediate effect, with CEO
Kamper taking over his responsibilities until a successor is
found, Leoni added.
Reuters reported in December that Indian car wiring maker
Motherson Sumi Systems Ltd was in early talks with
Leoni over a possible merger, citing people close to the
($1 = 0.8832 euros)
(Reporting by Ludwig Burger
Editing by Ros Russell)
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