Hanover, Germany – Continental AG has reported a “slight recovery” in third quarter results but believes the global automotive downturn is yet to be over.
In an 11 Nov quarterly statement, the German group posted a 0.7% decline in sales to €10.3 billion in the three months to end of September, with adjusted EBIT improved 36% to €832 million.
Market development in the third quarter, according to Conti, was “better than expected,” particularly in China and North America, which saw 10.7% and 0.5% year-on-year improvements in car sales respectively.
“We did remarkably well in the third quarter from an operational standpoint,” said the group’s outgoing CEO Dr Elmar Degenhart.
However, he warned that the current development should not “fool us into thinking that the global automotive markets will recover quickly.”
With the car industry “in the midst of a fundamental technological transformation” and amid the rising number of coronavirus cases, Degenhart said “markets continue to be unpredictable.”
The overall critical situation, said the CEO, confirmed that a “resolute and flexible action” was needed to safeguard the group’s competitiveness and viability.
That, Degenhart said, is the goal of Continental’s €1 billion structural programme and realignment strategy, which are currently underway at the German group.
Continental unveiled its 2019–2029 structural programme in September last year and doubled its savings target in September this year.
Likely to affect 30,000 jobs, the programme is intended to achieve gross annual savings of over €1 billion from 2023 onwards.
Conti says third quarter comeback should not “fool us”
Continental Corp.
