Continental AG
Automotive supplier Continental expects shrinking margins.
MunichThe auto supplier Continental is preparing for increased pressure on its margins in the new year. The company from Hanover expects only an adjusted return on earnings before interest and taxes (EBIT margin) of between eight and nine percent for 2019, such as Conti announced on Monday. In the past year, the margin was still at 9.2 percent.
This corresponded to a profit before taxes and interest of around 4.1 billion euros, which was just above the expectations of the Reuters surveyed analysts. For the current year, however, they had given Conti an average margin of 9.5 percent. Turnover in 2018 was just over the previous year at 44.4 billion euros. In 2019, it should rise to 45 to 47 billion euros. The earnings outlook on the stock market caused disillusionment: The Conti share lost in the Frankfurt early trading 3.2 percent.