Continental radically slashes forecast

April 01, 2020 //By Christoph Hammerschmidt
Continental radically slashes forecast
The corona crisis is raging particularly hard in the automotive sector. Due to the massive slump in production in this industry, the technology supplier Continental is now forced to cancel its forecast for the current fiscal year.

Just one month ago Continental presented its annual results.  The company had assumed sales of between €42.5 and 44.5 billion for the current fiscal year; according to these estimates, the EBIT margin should be between 5.5 and 6 percent of sales. 

Now that's water under the bridge again.  In view of the uncertainties about the duration of the adverse effects of the coronavirus pandemic and the associated potential further consequences for production, supply chain and demand, the company is lowering its outlook for the current fiscal year.  Due to the continued strong dynamics of the development, it is currently not possible to predict when a new outlook for 2020 can be given, Continental announced.

At the same time, the automotive tech company published preliminary figures for the first quarter.  Accordingly, Continental expects consolidated sales of approximately €9.4 to €9.8 billion and an adjusted EBIT margin of only 2 to 3 percent in the first three months of the fiscal year.  The Automotive Technologies division and the former Powertrain division together are expected to generate sales of approximately €5.7 to €5.9 billion and an adjusted EBIT margin of only about 0%.

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