Continental first-quarter sales and profit margin below market expectations
Reuters
Published Apr 16, 2024 17:42
Updated Apr 16, 2024 18:15
FRANKFURT (Reuters) -German automotive supplier Continental's revenue and profit margin were lower than market expectations during the first quarter, it said on Tuesday, citing labour costs and continuing price negotiations with customers.
In an unscheduled statement, Continental said first-quarter sales amounted to 9.8 billion euros ($10.41 billion), below an analyst consensus of 10 billion euros, with an adjusted EBIT margin of 2%, against a consensus forecast of 3.7%.
The company also reiterated its full-year guidance.
In its automotive segment, Continental singled out "lower volume particularly in Europe as well as pending contract renegotiation for additional pricing with customers" as well as exchange rates and an unfavourable product mix in North America.
Frankfurt-listed shares in the company were down 5% at 1702 GMT.
The company's tyre business suffered from fewer working days in March due to the Easter break in Europe that caused business to shift into April, which it said was considerably stronger.
($1 = 0.9414 euro)
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Written By: Reuters
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