Monday, October 17, 2016

Continental expects less profit – MIRROR ONLINE

the antitrust proceedings, warranty claims, earthquake in Japan: The automotive supplier Continental has reduced due to a number of problems its profit forecast to 480 million euros.

Continental plant (in  Hannover)


Continental plant (in Hannover)

The car supplier and the manufacturer Continental tire believes that as a result of a whole series of problems with a significantly lower profit. The operating profit in the automotive supply business is expected to be around 480 million euros, weaker than expected, the Dax group on Monday evening in Hannover. Among other things, some of the Contaminated sites reflect. So, the group travelled to ongoing antitrust proceedings, as well as warranty claims of the customer for more money.

in Addition, have been affected a supplier in Japan more of three earthquakes in the country than previously expected, resulting in Conti to a loss of Sales. Finally, the costs for the development of new drives will increase more than expected. “These pressures can only be in part compensated”, the company said. The margin of the automotive supply business will, therefore, instead of 8.5 per cent to just over 6.5 percent.

While going confirmed the sales forecast despite the Situation in Japan, with around 41 billion euros before exchange rate influences. The adjusted Ebit margin for the group will be in the current year, but only about 10.5 percent. So far the group was from Hanover, of about eleven per cent.

In the previous year it was 11.7 percent. The target of around 41 billion euros in sales, the management Board confirmed, however, in the previous year this figure was 39.2 billion euros. Thus, the group is expected to earn surgically still good for 4.3 billion euros.

For Conti this is a bitter shock. The group had raised the forecast for this year twice already. Investors were also disappointed. In the OTC trade at Lang & Schwarz, the Continental Chart slid show-rate of almost three percent.


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