Continental says it has managed a solid start to the new business year. Thanks to its technology portfolio, the company has been able to distance itself from the substantial downward trend on the market. At EUR11.0bn (US$12.3bn), sales were on par with the prior year level. The adjusted EBIT margin was 8.1 % (adjusted EBIT: EUR884m).
At the DAX company’s Annual Shareholders’ meeting in Hanover on Friday, Continental’s CEO Dr Elmar Degenhart was satisfied with the results for the quarter: “Global car production was down substantially at the beginning of the year, as expected. That is why our solid results are all the more gratifying, thanks to our strong market position on the mobility markets worldwide. Our increased cost discipline also contributed to this achievement.”
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In the first three months of 2019, global automobile production was down by more than 6 % year-on-year, according to preliminary figures. In contrast, the technology company’s organic growth (before changes in the scope of consolidation and exchange-rate effects) was down by only 2 %.
Continental continues to expect a market upturn in the second half of the year and is thus maintains its annual guidance issued at the beginning of January.
In the current fiscal year, Continental is laying further important groundwork for its organisational realignment announced last July. A crucial part of this is the transformation of its powertrain business into an independent group of legal entities, which Continental completed on schedule on 1 January 2019.
Since then, Continental has continued preparing for the possible partial IPO of its powertrain business, which in the future will be called Vitesco Technologies. It is expected that the necessary conditions will be fulfilled toward the end of the second half of the year so that additional details can be provided to the capital markets. Once further technical and regulatory requirements have been completed, the company will be in a position to finalise the partial IPO. Depending on the market situation, this is expected from 2020.
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