Continental adjusts outlook for fiscal year

Continental has adjusted its outlook for the fiscal year of 2019, due to the continued decline in the global production of passenger cars and light vehicles.

Continental had previously expected global automobile production for 2019 to be at the same level as the previous year, but according to the latest developments, a decline of around five per cent for the full year is now expected.

Furthermore, there are indications of unexpected changes in customer demand as well as potential warranty claims in the Automotive Group in the second half of the year.

The causes of these potential warranty costs and the corresponding amounts are not clarified at this point in time.

Wolfgang Schäfer, CFO of Continental, said: “Our second quarter was solid despite a further downturn in the market environment. We are now less optimistic about the second half of the year than we were before.”

“The reason for this is the continuing downward trend in vehicle production in Europe, in North America, and particularly in China. Unresolved trade conflicts are also contributing to economic uncertainty.”

“Therefore, we are adjusting our outlook for the year as a whole.”