[Leica] Leica financial situation

[Thinkofcole at aol.com (Thinkofcole@aol.com)]

Leica Camera AG issued a news release today [friday,  Aug. 5, 2005] 
announcing that it had settled four lawsuits out of court,  clearing the way 
for a 
badly needed capital increase in the company  and that its two leading 
stockholders -- Hermes of France and ACM  Projektentwicklung GmbH of 
Salzburg, 
Austria---- would take part in Leica's sale  of new stock. 
  In Germany, Leica stock rose 2.7 percent, to 4.20 Euros, up  0.11 in thin 
trading by noontime today [friday].  
In a lengthy statement, the ailing camera producer also  reported that its 
loss for the fiscal year 2004-2005, ended March 31, would  total 20 million 
euros while sales totalled 93.7 million. It said the  "additional burden" 
was the 
result of previously announced inventory  devaluations. 
  It added, however, that despite "insecurity" from  both  customers and 
business partners over its financial situation, sales in the first  four 
months of 
the new fiscal year rose slightly above management expectations  and 
"markedly'' above the same period the year before. 

   Leica said that its two major  investors  would continue to own the same 
share of the company after  subscribing to additional stock.
   It added that it expected that a fifth lawsuit would be  dismissed as 
unlawful. All five stockholders had challenged Leica's plan to  raise 
capital by 
issuing new stock.  Part of the agreement with the four  plaintiffs provided 
for Leica to pay for the costs of bringing the legal  challenge. 
   The mutual agreement, Leica said, would enable Leica to  publish its 
invitation to subscribe to the capital increase in the  electronic Federal 
Gazette 
"without delay." 
    Its board, it said, was "very optimistic" that it now  would be able to 
raise the funds for what it called "rehabilitation and  restructuring."
 
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