Continental changes plans for Vitesco spin-off

Continental changes plans for Vitesco spin-off
Instead of the originally planned partial IPO of its Powertrain division under the new name Vitesco Technologies, Continental's Executive Board now wants a complete spin-off with subsequent listing of the company on the stock exchange. At the same time, the Executive Board presented a rather gloomy forecast.
By Christoph Hammerschmidt

Share:

In addition, the company announced preliminary key figures for the third quarter of 2019, which are in line with analysts’ current expectations. Group sales in the third quarter amounted to around 11.1 billion euros and the adjusted EBIT margin to around 5.6 %. Automotive Group sales reached around EUR 6.6 billion, with an adjusted EBIT margin of around 1.6 %. This figure includes the warranty provisions of 187 million euros announced in July 2019.

At the same time, the vehicle tech supplier has to recognize impairment losses of 2.5 billion euros. Continental is thus likely to generate a loss for the full year. The reason for the impairment is the sluggish automotive economy, especially in China. In addition, the company now assumes that there will be no upturn in the medium term. “We do not expect global production of passenger cars and light commercial vehicles to pick up significantly in the next five years,” explained CFO Wolfgang Schäfer.

 

Related articles:

Vitesco supplies e-drive for PSA and Hyundai large series models

Continental’s powertrain business becomes Vitesco

Continental slashing 10% of global workforce

 

 

eeNews Automotive
10s