Continental shares to plunge on the car manufacturer, the components of the company alert

  • Continental shares to plunge on the car manufacturer, the components of the company alert
    Independent.t. E.
    German industrial giant continental shocked investors for the second time this year, as disappointing data on sales in China and Europe made the car parts, to cut its forecast of revenues and expenses for new technologies put pressure on profitability. The stock fell the most since 2009.
    https://www.independent.ie/business/world/continental-shares-plunge-on-carparts-maker-profit-alert-37242239.html
    https://www.independent.ie/business/article37242238.ece/d49e9/AUTOCROP/h342/2018-08-23_bus_43490260_I1.JPG

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German industrial giant continental shocked investors for the second time this year, as disappointing data on sales in China and Europe made the car parts, to cut its forecast of revenues and expenses for new technologies put pressure on profitability. The stock fell the most since 2009.

The world’s second largest manufacturer of automotive components expects an income of €46 billion for the year, excluding currency effects. This is a 1 billion euros lower than the previous target, continental said Wednesday. It also reduced its forecast for operating return on sales of more than 9pc, down from the target 10pc.

The second period of the leadership of Continental this year, underscores the pressure on automotive companies, whose traditional business model to a stream. The manufacturer, which last month announced radical changes to keep pace with the transformation of the industry of electric and self-driving cars, said that the cost of developing new technologies for clients affected his business.

Shares in Continental fell 14pc hole saw up to €160.20 each at 1:20 p.m. in Frankfurt. The profit warning so soon after the previous forecast a decline in April was a shock, Tim Shuldt, an analyst of the company “Equinet,” he said by phone. (Bloomberg)

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