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Crisis of the car industry: Continental must write off billions and expects loss

2019-10-22T12:16:57.634Z


The automotive supplier Continental must write off a billion amount and slips therefore this year probably in the loss zone. The Group does not expect a rapid recovery in the auto industry.



At Continental, the interior design of cars is running poorly. Now the group has to write off a total of 2.5 billion euros and is therefore likely to make a loss this year.

Most of the allowances are for the car interior business, such as Continental announced. The Group assumes that vehicle production will "not significantly improve" in the next five years worldwide. Therefore, the group must write off the values ​​with which - mostly bought more than ten years ago - companies are in the balance sheet.

In the past third quarter, the Group had thus made a loss before taxes and interest (EBIT), for the year as a whole, the bottom line is expected to be red.

Operatively, the third quarter, however, the analysts' expectations met: The turnover was 11.1 billion euros.

Source: spiegel

All business articles on 2019-10-22

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