Continental Profit Hurt by Rising Costs
November 10 2016 - 2:05AM
Dow Jones News
By Ulrike Dauer
FRANKFURT--Continental AG (CON.XE) on Thursday said net profit
fell 41% in the third quarter, mainly on higher costs, but said it
was on track for full-year earnings targets.
Net profit in the quarter ended Sept. 30 fell to 378.5 million
euros ($414.1 million) from EUR635.7 million in the year-earlier
quarter, shy of EUR399 million forecast in a Dow Jones Newswires
poll of five analysts.
Sales rose 3.8% to EUR9.98 billion, above the forecast EUR9.90
billion.
The German auto parts maker said it was on track for its 2016
targets of an adjusted operating profit margin of above 10.5% and
sales of around EUR41 billion.
Continental had lowered the profit margin guidance in
mid-October, from 11%, because it identified new factors that will
lower 2016 operating profit of its Automotive business by some
EUR480 million this year. Of this, EUR450 million was booked in the
third quarter. The expected hits are a mix of warranty expenses,
potential antitrust fines, negative effects from three earthquakes
in Japan and higher costs for research & development,
Continental has said.
-Write to Ulrike Dauer at ulrike.dauer@wsj.com
-0-
ENDS
(END) Dow Jones Newswires
November 10, 2016 01:50 ET (06:50 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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