Continental: cuts 2018 guidance; shares fall 10%
(CercleFinance.com) - German automotive supplier Continental has cut its full-year earnings guidance, citing lower sales expectations, cost increases and warranty claims.
The group's 2018 adjusted EBIT margin is now expected to be over 9%, compared with a previous forecast of over 10%, Continental said in a statement on Wednesday.
Sales are now expected to reach around 45 billion euros this year, compared with a previous estimate of 46 billion euros.
In its press release, Conti said that its original equipment business has fallen short of expectations, especially in Europe and China, and adds that weak demand on tyre markets has also led to lower sales expectations.
The Frankfurt-listed shares fell over 10% after this warning was made.
Continental will publish its 9 month results on 8 November.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The group's 2018 adjusted EBIT margin is now expected to be over 9%, compared with a previous forecast of over 10%, Continental said in a statement on Wednesday.
Sales are now expected to reach around 45 billion euros this year, compared with a previous estimate of 46 billion euros.
In its press release, Conti said that its original equipment business has fallen short of expectations, especially in Europe and China, and adds that weak demand on tyre markets has also led to lower sales expectations.
The Frankfurt-listed shares fell over 10% after this warning was made.
Continental will publish its 9 month results on 8 November.
Copyright (c) 2018 CercleFinance.com. All rights reserved.