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Conti Lowers Outlook Again
Continental AG has lowered its guidance for fiscal 2019, mainly because of an anticipated downturn in industrywide production.
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Continental AG has lowered its guidance for fiscal 2019, mainly because of an anticipated downturn in industrywide production.
Conti previously predicted global vehicles production would match last year’s volume. Now the supplier of electronics, tires and other components expects car and truck production will drop 5% in 2019.
Conti also warns of an unspecified increase in warranty claims and “unexpected changes” in customer demand.
The company predicts its second-quarter consolidate sales will total about €11.2 billion ($12.6 billion), compared with €11.4 billion in the same period last year.
Conti, which lowered its outlook twice in 2018, now predicts its sales this year will fall €1 billion-€2 billion below its previous forecast of about €46 billion ($52 billion). The company anticipates its adjusted pretax earning margin this year will be 7%-7.5%, down from its previous guidance of 8%-9%.
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