The global Auto downturn, the upheaval in the industry, and the risks of Coronavirus-let the epidemic is Continental, with great concern of the new fiscal year with confidence. The Dax group from Hannover reported on Thursday a loss of billions for 2019 - at the same time he needs to adjust to the more difficult months. "The car industry is going through one of the most violent storms currently lives," said chief Executive Elmar Degenhart for the presentation of the preliminary balance sheet. "The impact will take a long time."Continental: The year is absolutely not satisfactory
last year, a shortfall of more than € 1.2 billion was in the automotive supplier bottom line, after he had earned in 2018, nearly 2.9 billion euros. Conti had announced last autumn, depreciation in the billions, mainly in the business with car interiors. In addition, the balance sheet is burdened by costs for restructuring, which Conti battles against the auto crisis.
"is not run, The fiscal year for us is absolutely satisfactory," admitted chief financial officer Wolfgang Schaefer, with a view to weak sales of car manufacturers in many countries. In addition, there has been a "significant additional special effects" - including a previously reported billion-value adjustment of previous acquisitions. "Overall, the economic environment in 2020 will remain very challenging," said Schaefer.
The Conti's share price slumped to its lowest level in about seven years, in the meantime, they lost on Thursday morning, about 12 per cent. Finally, the paper was on the Dax at the end of a good 10 percent at 86,31 Euro. This also weighed on the prices of other suppliers such as Schaeffler and Hella . Because Continental is a 2020 and a further decline in profit margin in the current business. Between 5.5 and 6.5 percent of sales, will now remain only as adjusted earnings before interest and taxes left, significantly less than experts have thought. Continental 85,59 EUR -10,67 (-11,08%) Xetra
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JPMorgan-Analyst Jose Asumendi, the bleak Outlook could have on the operating margin, the market expectations of around 20 percent decline. "Contis Outlook to 2020 is a relentless reminder of what is in store for a tough year on the automotive industry," commented Chris McNally from the analysis of the house of Evercore. Conti is still a very large group. "In an environment of rapidly falling volumes, Conti responded, therefore, with its old-fashioned, on volume growth cost structure is not fast enough," he stated.
Already in 2019, it delivery grow best if by. Although the group came in relation to the overall market is still relatively unscathed: sales increased slightly by 0.2 percent to 44.5 billion euros. According to estimates, the global car production fell by about 6 per cent of the own revenues declined Conti only 2.6 percent. Adjusted mainly for depreciation and amortisation costs for the group restructuring, the operating result amounted to EUR 3.2 billion, a decline of a fifth. The employee shall receive a special payment, the dividend for the shareholders is projected to decline from 4.75 euros to 4 euros.Conti disappointed in Outlook
The Outlook leaves little guess Good - among other things, the possible consequences of the new Coronavirus to increase, the risks to demand and output. "We see it already in the fever of the stock markets curves: The economic climate is also affected by the Virus," said Degenhart.
While Conti 2020 calculated on the basis of a decrease in the global production of passenger Cars and light commercial vehicles by 2 percent to 5 percent, will alone, for China - the country of origin of the pathogen - five million less cars were produced as expected yet 2017. The major customers VW, it was said, the situation relaxes. "But, we also go on view."
Degenhart now wants to focus even more on Saving. "It's only been five months that we thought we'd go deep enough," he said. Today, one must recognize that further measures were necessary. Continental had already established the tag program "Transformation 2019-2029". Thus, Degen wants to align the hard Conti more on sensors, electronics and Software, old fields, such as hydraulics can be shut down. Against the Background of the tense situation would now be "examined additional measures," it said. Until may Conti wants to give the further plans of the time.layoffs can't
be excluded as many employees as Possible are to be further qualified, however, it could also lead to a sensitive reduction of staff. By 2023 there are likely to be Continental in the context of the current worldwide plans for 15,000 jobs, "changes". Degenhart said, about 1000 Employees are already affected by cuts - these are included in the sum of 1768, to the number of employees up to the end of 2019.
"In an extreme case, we can not rule out dismissals for operational reasons", stated Degenhart. He made it clear, however, this was "the last drastic measure you can imagine". Conti rate the competitiveness of each site. To called negotiations with local works councils, the Chairman of the Board, no Details: "We are making good progress and are in constructive discussions. And we try to find acceptable agreements to provide the employees, wherever possible, to Alternatives."
unionists see the tag critical - some accuse the Board of management a radical change. Skeptical of some of the also provides for the removal of the Drive sector. For the future company Vitesco shepherd called orders in the amount of 1.8 billion Euro for the E-business. In the second half of the year, "a Spin-off to come."
Since 2017, the global decline in production of passenger Cars and light commercial vehicles is now as strong as in the financial and economic crisis ten years ago, said Degenhart. Unlike in 2009, Conti was "in the balance sheet on solid foundations," stressed Schaefer. Also, the investment between 2018 and 2019 be climbed from 6.3 to 6.7 billion euros.
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