Continental: posts 2019 loss on write-downs

(CercleFinance.com) - Continental fell into the red last year, hurt by heavy write-downs due to diminished market expectations, while missing analysts' estimates.


This morning the German auto parts maker said its operating loss reached 268 million euros in 2019, compared with a profit of 4 billion euros in 2018.

Note that this result included non-cash write-downs of 2.5 billion euros, as announced in October 2019, on the back of goodwill impairment that was triggered by diminished market expectations, the group said.

The Hanover-based heavyweight, best known for its tyres, said its 2019 sales rose slightly to 44.5 billion euros, from 44.4 billion euros in 2018.

For fiscal 2020, the company said it expects consolidated sales of around 42.5 billion-44.5 billion euros, as it expects global passenger car production to decline for a third successive year (-2% to -5%).

On this basis, Conti is proposing a dividend of 4 euros for 2019, down from 4.75 euros in 2018.

The tyre burst in Frankfurt this morning, with its shares down over 9% in morning trading after the news.

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