Continental Sales Beat Estimates, Though Car Supplier Is Wary
Continental AG reported preliminary results that were better than expected thanks to business improvement late in the quarter, though it refrained from giving a fresh outlook for the year.To get more news about Expert 24 Trade, you can visit wikifx news official website.
Sales dropped by almost 40% to 6.62 billion euros ($7.6 billion), the German auto-parts maker said in a statement Monday. Analysts on average were expecting revenue to drop to 6.37 billion euros, according to data compiled by Bloomberg.
Although business “showed substantial improvement through the course of the second quarter,” Continental said in the statement, there is still “substantial uncertainty due to the ongoing Covid-19 pandemic.”
“It remains difficult to gauge possible adverse consequences on production, the supply chain and demand,” the company said.
Continental and its peers rushed to drastically cut costs earlier in the year when shutdowns aimed at containing the spread of the virus hit auto factories and showrooms, bringing production to a halt and significantly curbing sales. The company announced in June that it would cut its dividend payout to save about 350 million euros.
The uncertainty over how fast economies will recover is still an open question. Automotive companies are hoping government incentives will spur car sales and help the industry recover in the second half of the year.