Continental AG Reports Net Income In Q2 – Quick Facts

Continental AG (CTTAY.PK) said ongoing shortage of semiconductors severely slowed automotive production in the company’s second quarter, as expected. However, the Rubber Technologies group sector reported strong figures, due to the positive performance of the tire business.

“The chip bottleneck and rising raw material prices are set to weigh on the automotive industry throughout 2021,” said Nikolai Setzer, Continental CEO.

Second quarter net income was 545 million euros compared to a loss of 741 million euros, previous year. Earnings per share was 2.72 euros compared to a loss of 3.70 euros. Adjusted EBIT was 711 million euros compared to a loss of 635 million euros. Adjusted EBIT margin was 7.2 percent, for the quarter. Consolidated sales totaled 9.9 billion euros, up 49.7 percent from last year. Before changes in the scope of consolidation and exchange-rate effects, sales rose by 55.3 percent. The company noted that its prior year sales was impacted by the economic consequences of the first lockdown due to the pandemic.

From continuing operations, second-quarter profit per share was 2.22 euros compared to a loss of 2.64 euros, last year. Adjusted operating result from continuing operations was 518.3 million euros compared to a loss of 467.7 million euros. Sales from continuing operations increased to 8.35 billion euros from 5.66 billion euros.

Continental is adjusting its outlook for the full year for continuing operations, thus excluding Vitesco Technologies. The company now expects consolidated sales of around 33.5 billion euros to 34.5 billion euros, revised from prior guidance range of 32.5 billion euros to 34.5 billion euros. Adjusted EBIT margin is anticipated around 6.5 to 7.0 percent, revised from prior guidance of 6 to 7 percent.

For fiscal 2021, the company expects shortages of semiconductors to have a noticeable effect on automotive production. After a production output of 74.6 million passenger cars and light commercial vehicles last year, Continental expects an increase of between 8 and 10 percent for the year as a whole, updated from prior guidance of 9 to 12 percent.

Source: Read Full Article