Continental Posts Profit For Q3, But Sales Decline; Cuts Annual Sales Outlook
Continental AG (CTTAY.PK), a German automotive parts maker, on Wednesday recorded a profit for the third-quarter versus loss last year. However, the company posted a decline in revenue. In addition, the company has revised down its full-year sales guidance.
Continental, said: “The improvement in earnings resulted in particular from the price adjustments made in response to inflation-related additional costs of around €1 billion for 2023 in the Automotive group sector alone. High cost discipline and stabilized supply chains also had a positive impact on earnings.”
For the three-month period to September 30, the company posted a net profit of 298.6 million euros or 1.49 euro per share, compared with a loss of 210.8 million euros or 1.05 euro per share, recorded for the same period last year.
Earnings before interest and taxes or EBIT surged to 460.7 million euros from previous year’s 12.2 million euros.
Adjusted operating result was 637 million euros, higher than 595 million euros last year.
EBITDA dropped to 1 billion euros from 1.078 billion euros in 2022.
Sales were 10.240 billion euros, down from last year’s 10.395 billion euros.
Looking ahead, for the full year, Continental now projects consolidated sales of around 41 billion euros to 43 billion euros against its previous guidance of 41.5 billion euros to 44.5 billion euros.
The company now expects its Automotive Group sector sales to be in the range of around 20 billion euros to 21 billion euros, lesser than its previous outlook of 20.5 billion to 21.5 billion euros, which reflects ongoing negative exchange rate effects.
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