[xsl] formatting not able to retain

["Joga Singh Rawat jrawat@xxxxxxxxxxxxxx" <xsl-list-service@xxxxxxxxxxxxxxxxxxxxxx>]

Dear experts,
We are not able to retain formatting elements ie. bold, italic within
following example. At the same time title text is also gets duplicate. Can
anyone give me any clue regarding this. Thanks in advance

XSL
<xsl:template match="preformat">
 <literallayout type="programlisting">
  <xsl:apply-templates
select="named-content[@content-type='list-head']/named-content[@content-type=
'label']" mode="list-label"/>
  <xsl:apply-templates select="named-content[@content-type='list-head']"/>
   <xsl:variable name="text" select="replace(., '  ', ' &#160;')"/>
   <xsl:analyze-string select="$text" regex="[\n\r]">
      <xsl:non-matching-substring>
       <line><xsl:value-of select="."/></line>
    </xsl:non-matching-substring>
   </xsl:analyze-string>
</xsl:template>

Input
<preformat id="list1">
<named-content content-type="list-head">
<named-content content-type="label">Listing 3.1</named-content> Listing
Head</named-content>
01 <bold>public class</bold> Mitarbeiter {
02   <italic>// Attribute</italic>
03   private final String name;
04   private&ndash;final int personalNummer;
05   private double gehalt;}
</preformat>

Current output
<literallayout type="programlisting" id="list1">
<number>Listing 3.1</number><ti>Listing Head</ti>
<line>Listing 3.1 Listing Head</line>
<line>01 public class Mitarbeiter {</line>
<line>02 C  // Attribute</line>
<line>03 C  private final String name;</line>
<line>04 C  privateC"b,bfinal int personalNummer;</line>
<line>05 C  private double gehalt;}</line>
</literallayout>

Required output
<literallayout type="programlisting" id="list1">
<number>Listing 3.1</number><ti>Listing Head</ti>
<line>01 <b>public class</b> Mitarbeiter {</line>
<line>02 C  <i>// Attribute</i></line>
<line>03 C  private-final String name;</line>
<line>04 C  privateC"b,bfinal int personalNummer;</line>
<line>05 C  private double gehalt;}</line>
</literallayout>


...JSR