Solid First Quarter in Weak Market Environment
- Key data published at its Annual Shareholders' Meeting
- Market continues downward trend at start of year as expected
- Supported by strong market position: first quarter sales at EUR11.0 billion on par with prior year level
- Adjusted EBIT at EUR884 million (margin: 8.1 percent)
- Technology company continues to expect market upturn in second half-year and thus maintains its annual guidance
- Partial IPO of powertrain business: expected to be ready by the end of second half-year. Start of trading possible from 2020
Hanover, April 26, 2019. Continental 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 EUR11.0 billion, sales were on par with the prior year level. The adjusted EBIT margin was 8.1 percent (adjusted EBIT: EUR884 million).
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."
In the first three months of 2019, global automobile production was down by more than 6 percent 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 percent.
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 organizational 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 January 1, 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 finalize the partial IPO. Depending on the market situation, this is expected from 2020.
Key Figures for the Continental Corporation, 1st Quarter 2019
||January 1 to March 31
|| in %
|Adjusted operating result (adjusted EBIT)1
|in % of adjusted sales
1Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects.
Continental will present its business figures for the first quarter of 2019 on May 9.
For more information about the Annual Shareholders' Meeting, please visit: www.continental.com/asm
Continental develops pioneering technologies and services for sustainable and connected mobility of people and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent and affordable solutions for vehicles, machines, traffic and transportation. In 2018, Continental generated sales of EUR44.4 billion and currently employs around 245,000 people in 60 countries and markets.
Spokesman, Business & Finance
Phone: +49 511 938-1278
Cell: +49 151 688 64 262
Head of Media Relations
Phone: +49 511 938-1364
Mobile: +49 173 314 5096
Press portal www.continental-press.com
Media center www.continental.com/media-center
Annual Shareholders' Meeting www.continental.com/asm
Quarterly reports www.continental.com/quarterly-results
26.04.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de