Continental: shares drop despite quarter above estimates
(CercleFinance.com) - German tyre and car parts maker Continental posted better-than-expected third-quarter sales and profit late on Wednesday, but its shares still fell in Frankfurt on Thursday.
Continental said sales fell to 10.3 billion euros in the past qurter, from 11.1 billion euros a year ago, with an adjusted EBIT margin of 8.1%, up from 5.6% in the third quarter of 2019.
The figures for the quarter implied earnings before interest, tax and amortisation (EBITA) of 830 million euros, above consensus of about 620 million euros.
The company said it will record goodwill impairments of 649 million euros in the third quarter as part of its annual planning process.
In addition, restructuring costs and asset impairments - part of the expanded structural program announced last month - totalled 687 million euros in the third quarter, Conti said.
Shares in Continental, the world's number four tyre maker, were trading down 1.2% on Thursday, underperforming a 0.8% drop in the STOXX Europe 600 Automobiles & Parts index.
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