Continental: third-quarter in line with expectations
(CercleFinance.com) - German auto parts maker Continental on Wednesday reported third-quarter key indicators that were in line with expectations, and confirmed its annual outlook.
Third-quarter sales rose by about 2.9% to about 11.1 billion euros, although the group's adjusted EBIT margin fell from 7.1% to 5.6%, the company said.
However, the key attraction in the report was the announcement of the spin-off of Conti's powertrain business, which could be approved at its annual shareholders' meeting at the end of April 2020.
This means that plans for a partial IPO have been ditched.
Conti also said that it will book non-cash impairments of goodwill and other intangible assets for about 2.5 billion euros in the third quarter, mainly due to the revision of market expectations.
"Comments announcing stability in the automotive markets by 2024 do not incite optimism," analysts at Invest Securities in Paris say, reiterating their "neutral" rating on the share.
Even so, the Continental stock is currently up 1.3% in Frankfurt.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Third-quarter sales rose by about 2.9% to about 11.1 billion euros, although the group's adjusted EBIT margin fell from 7.1% to 5.6%, the company said.
However, the key attraction in the report was the announcement of the spin-off of Conti's powertrain business, which could be approved at its annual shareholders' meeting at the end of April 2020.
This means that plans for a partial IPO have been ditched.
Conti also said that it will book non-cash impairments of goodwill and other intangible assets for about 2.5 billion euros in the third quarter, mainly due to the revision of market expectations.
"Comments announcing stability in the automotive markets by 2024 do not incite optimism," analysts at Invest Securities in Paris say, reiterating their "neutral" rating on the share.
Even so, the Continental stock is currently up 1.3% in Frankfurt.
Copyright (c) 2019 CercleFinance.com. All rights reserved.