Leoni posts Q1 operating loss on Ukraine war, higher costs

FRANKFURT Reuters – German cable and harness maker Leoni, which supplies automakers with wire harnesses crucial for car production, on Friday reported a firstquarter operating loss, blaming supply chain bottlenecks, inflation and effects of the war in Ukraine.

The company swung to an operating loss before exceptional items of 17 million euros 18 million in the first quarter, down from a profit of 29 million euros in the same period last year, it said, pointing to higher raw material, logistics and energy costs.

“In addition, there was continued high volatility in customer calloffs due to disruptions in the global supply chains, mainly due to the semiconductor crisis, as well as the consequences of the war in Ukraine,” Leoni said.

Leoni said firstquarter sales fell 7 to 1.26 billion euros but stuck to its 2022 outlook. The company a month ago said it had partially revived its factories in Ukraine after a temporary halt due to Russias invasion.