Continental: warns 2019 margin will fall

(CercleFinance.com) - German tyre and brakes maker Continental warned that its margin will fall to below analysts' expectations this year.


Based on current market expectations, Continental forecasts an adjusted EBIT margin in a range of 8% to 9%, while 2018 adjusted EBIT margin is expected to be around 9.2%.

In comparison, analysts expected an adjusted EBIT margin for the current fiscal year's to be around the same level as 2018.

The company also said that it expects consolidated sales in a range of 45 billion euros to 47 billion euros for 2019.

According to preliminary key data, 2018 sales will be around 44.4 billion euros.

On top of this warning, Conti provided some reservations for the new fiscal year.

"The increasingly volatile market conditions and profound technological changes in the automotive industry make it ever more difficult to precisely forecast the business development over a one-year period," it said in a statement.

The market's reaction was initially bearish, although the share managed to pare its losses on Monday morning in Frankfurt, slipping just 0.3% at 125.7 euros.

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