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Conti Profits Dive on Special Charges
Continental AG’s revenue for the third quarter rose 4% to €10 billion ($10.9 billion). But special charges dragged down pretax earnings 42% to €596 million ($650 million).
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Continental AG’s revenue for the third quarter rose 4% to €10 billion ($10.9 billion). But special charges dragged down pretax earnings 42% to €596 million ($650 million).
Separately, the tires and electronics supplier predicts widespread exchange-rate turmoil for the auto industry because of U.S. president-elect Donald Trump’s threats to levy tariffs on vehicles imported from Mexico. “The whole industry uses Mexico as an export country to the U.S., “ Chief Financial Officer Wolfgang Schaefer tells Bloomberg News.
Conti’s net income for July-September sagged to €379 million ($413 million) from €1 billion in the same period last year. Results were hurt by €450 million ($490 million) in costs in its automotive operations related to warranty claims, an impending antitrust settlement and product research, according to the company.
Still, the company is bullish about a strong finish in the fourth quarter, including a 10.5% margin for adjusted EBIT.
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