Continental headquarters in Hanover
The supplier is deep in the red.
(Photo: dpa)
The automotive supplier Continental has gone deep into the red due to high costs and numerous special effects. The bottom line is that the Dax group reported a loss of 251 million euros for the second quarter, after a profit of 545 million a year ago, as Continental announced on Tuesday. Analysts polled by Refinitiv had expected an average profit of 294 million euros for the quarter.
“The current headwind is hurricane-like,” said CFO Katja Dürrfeld when the final figures were published. The Dax group is sticking to its forecast for the year as a whole.
Management cited the price increases for raw materials, energy and logistics triggered by the Ukraine war as well as the shortage of electronic components and the corona lockdowns in China as the reason for the net loss. In addition, the automotive supplier was burdened by numerous special effects that add up to more than half a billion euros.
The Lower Saxony had already published preliminary operating figures for the second quarter on July 20th and also confirmed their forecast for the year as a whole. Accordingly, group sales are expected to increase to between 38.3 and 40.1 (previous year 33.8) billion euros, with an operating return of between 4.7 and 5.7 percent. At 4.4 percent, it was below this target corridor in the second quarter.
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