Continental can score points with problem child car supply
The automotive supplier and tire manufacturer Continental was surprisingly profitable in its problematic automotive supply division in the third quarter. However, exchange rate effects are slowing down the DAX-listed company, which is why it lowered its sales outlook. The management now expects annual sales of 41 to 43 billion euros, as the Hanover-based company announced on Wednesday. Previously, sales of 41.5 to 44.5 billion were planned. In the lucrative tire division, CEO Nikolai Setzer is somewhat more optimistic about the margin, while the range for the Group remains unchanged. Analysts were already expecting figures within the new forecast ranges for Group sales and tire margin.
In the third quarter, total turnover fell by 1.5 percent to 10.2 billion euros, partly due to the strong euro compared to the previous year. However, earnings before interest and taxes adjusted for special effects grew by 7.1 percent to 637 million euros. The corresponding margin increased by half a percentage point to 6.2 percent. Both the automotive supplier and tire divisions performed slightly better in terms of profitability than experts had expected. On balance, Conti made a profit of 299 million euros, after increased depreciation had resulted in a loss of 211 million euros for the Group in the previous year.
Despite the challenging car supply situation, Continental's automotive division showcased strong performance in its quarterly figures. The company reported a slight increase in profitability, even amidst the challenging quarterly figures for car supply.
Source: www.dpa.com
