Continental Cuts Sales Guidance

(Reuters) – German automotive and industrial supplier Continental announced on Monday that it has lowered its sales guidance for the second time this year.

The company cites weak demand from industries in Europe and North America as the primary reason for the reduction, despite posting a third-quarter core profit that exceeded expectations.

Continental now anticipates sales for 2024 to range between 39.5 billion and 42 billion euros ($42.9 and $45 billion). This is down from the previous guidance of 40 to 42.5 billion euros given in August. The decrease is mainly due to a revision in the ContiTech business, which serves both industry and car manufacturers.

The guidance in August had already been a cut, with the company indicating diminished demand for passenger cars and tyre replacements in North America.

For the third quarter, core profit was reported at 873 million euros, surpassing company expectations by about 11%. The firm attributes this performance to price discipline and cost-cutting efforts in its automotive division, which is slated for a spin-off by the end of 2025. Earlier in the year, Continental announced job cuts within this division.

Shares of Continental were reported to be up 3.5% in pre-market indications at 0535 GMT.

(Exchange rate: $1 = 0.9333 euros)