Hanover, Germany – Continental Corp.’s sales and profitability for the first quarter of 2020 have declined but the German group says the results are above its own expectations and analyst estimates.
Preliminary data published by the Hanover-based supplier 27 April indicate that earnings (adjusted EBIT) margin dropped to 4.4% from 8.1% the year before, while sales declined 11% to €9.8 billion during the period.
Earlier in April, the group said it projected sales of around €9.4 to €9.8 billion and an earnings margin of around 2 to 3% for the first three months of the year.
The Rubber Technologies group sector achieved sales of nearly €4 billion, down from €4.4 billion in 2019. The segment’s earnings margin fell 9.8% compared to 12.2%, as organic sales growth declined 10.8%.
Continental said it continues to experience material changes and disruptions in “a significant portion of its business” due to the ongoing coronavirus pandemic.
Conti did not provide a full year outlook, saying the “substantial uncertainty” regarding the duration and severity of the disruptions made it difficult to assess the impact of the pandemic on its supply chain and demand.
The group will deliver its interim report for the first quarter on 7 May.