Continental warns of billion loss from weak year - share breaks

in the past year, the company got the global downturn in the car industry clearly felt, and the Outlook remains cloudy. The company expects a decline in sales,

Continental warns of billion loss from weak year - share breaks

in the past year, the company got the global downturn in the car industry clearly felt, and the Outlook remains cloudy. The company expects a decline in sales, the profitability is likely to again become more affected. Although thousands of jobs are at stake, want to group-in-chief Elmar check Degenhart now "additional actions".

- Adjusted margin is expected to once again fall, and also below the analysts ' expectations

The special effects, the adjusted margin of earnings before interest and taxes is projected to fall in 2020 to between 5.5 to 6.5 percent, as the Dax group announced on Thursday in Hanover. In the previous year, the value had fallen by nearly 2 percentage points to 7.4 percent. Analysts had for the current year, with 7.1 percent, a significantly higher number on the slip of paper as the company.

Conti had to cut several times in recent years its view, because the environment in which suppliers, particularly in the Car was weaker. Now, the group sets its expectations, also a reliable profit suppliers, the tire and plastic business considerably down. In the auto supply Conti is only 3 to 4 percent return on sales, in the case of tyres and plastics between 10 and 11 percent. Both of which is again less than in the previous year and as estimated by analysts.

The shares have lost in early trade, just under ten percent. Dealers spoke of a weak balance sheet and a weak Outlook. The stock was caught up in the past few weeks, already under considerable pressure and in January for the first time since the middle of 2013 again under the brand of 100 Euro like. Most recently, she cost only 86,84 Euro. Continental 84,37 EUR -11,89 (-12,35%) Xetra

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course data

Violent loss of value: Share in the last five years, more than halved

Conti-investors could look forward to already in the past two years about the course the course, belonged to the paper but to the most vulnerable values in the Dax. Over the past five years, more than half of value loss.

The dividend for the previous year, supported the chief financial officer shepherd, as expected from 4.75 euros to 4 euros. The bottom line is Conti had retracted mainly because of high depreciation a loss of 1.2 billion euros after a profit of 2.9 billion a year earlier. The turnover was increased in 2019 slightly to 44.5 billion euros. Adjusted for non-recurring effects, the operating result before interest and taxes of 3.2 billion euros in the balance sheet, a decline of a fifth.

Conti-chief of the financial year 2019: "a Significant slowdown in the entire automotive industry,"

"The past year has left significant skid marks in the entire automotive industry," said Degenhart. This Conti was beaten in comparison to the overall market, but still relatively good.

Also, sales Management for this year is cautious, with a forecast of 42.5 to 44.5 billion euros in revenue. The market was previously expecting a value at the upper end of the range.

Production declines, Corona-Concerns, unresolved trade conflicts and more to challenge Conti 2020

The environment will remain out of the 2020 is challenging, said chief financial officer Wolfgang Schäfer. In addition to the Production declines in the turbulence from the Coronavirus epidemic, more unresolved trade conflicts as well as dramatically more stringent exhaust gas regulations in Europe, the automotive industry continued, the Manager.

at The turn of the year, the group employed more than 241.000 employees. The tag program "Transformation 2019-2029", which could cost many Jobs, it is now checked again. "The uncertainty in the relevant industries is growing rapidly. A hoped-for economic recovery will be delayed further,“ said Degenhart. Therefore, will now consider how Conti could respond through the existing structure of the program with additional measures.

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hyo/dpa
Date Of Update: 05 March 2020, 11:00

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