DGAP-Adhoc Continental AG announces new outlook for fiscal 2020

Nachrichtenquelle: EQS Group AG
11.11.2020, 07:44  |  123   |   |   

DGAP-Ad-hoc: Continental AG / Key word(s): Forecast
Continental AG announces new outlook for fiscal 2020

11-Nov-2020 / 07:44 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Having withdrawn the previous outlook for fiscal 2020 that was valid until April 1, 2020 due to the uncertain consequences of the COVID-19 pandemic, the Executive Board from Continental AG now sees itself in a position to provide an outlook for fiscal 2020. This outlook is conditional upon the following assumptions:

- The exchange rates in the fourth quarter of 2020 do not materially differ to those as of September 30, 2020.

- There are no new, unexpected impacts from the ongoing COVID-19 pandemic on production, the supply chain or demand.

Based on the aforementioned assumptions, the resulting new outlook for fiscal 2020 is as follows:

- Consolidated sales are expected to be around €37.5 billion and the adjusted EBIT margin is anticipated to be around 3%.

- Sales in the Automotive business areas - Autonomous Mobility and Safety, Vehicle Networking and Information, and Powertrain - are expected to total around €22.0 billion and the adjusted EBIT margin is anticipated to be around -1.5%. This outlook includes, among other factors, expected provisions for warranty claims and higher than expected net research and development expenses. These factors will noticeably impact adjusted EBIT in the fourth quarter of 2020.

- Sales in the Rubber business areas are expected to be around €15.5 billion and the adjusted EBIT margin is anticipated to be around 10.5%.

- Further expenses for restructuring and asset impairments related to the "Transformation 2019-2029" program are expected to be recognized in the fourth quarter of 2020, though the amounts are not clarified at this time. Though these effects will not affect adjusted EBIT, they will materially impact reported EBIT and net income attributable to shareholders.

- The capital expenditure ratio before financial investments is expected to be around 6.3% of sales.

- Free cash flow before acquisitions and before carve-out effects is expected to be positive for fiscal 2020. However, the value is expected to be significantly lower than in the previous year.

"Adjusted EBIT" is defined in the Glossary of Financial Terms on page 36 of the 2019 Annual Report, which is available at www.continental-ir.com.


Contact:
Person making the notification: Bernard Wang, Head of IR

11-Nov-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


Language: English
Company: Continental AG
Vahrenwalder Straße 9
30165 Hannover
Germany
Phone: +49 (0)511 938-1068
Fax: +49 (0)511 938-1080
E-mail: ir@conti.de
Internet: www.continental-corporation.com/de
ISIN: DE0005439004
WKN: 543900
Indices: DAX
Listed: Regulated Market in Frankfurt (Prime Standard), Hamburg, Hanover, Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Tradegate Exchange; Luxembourg Stock Exchange, SIX
EQS News ID: 1147141

 
End of Announcement DGAP News Service

1147141  11-Nov-2020 CET/CEST

fncls.ssp?fn=show_t_gif&application_id=1147141&application_name=news&site_id=wallstreetContinental Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



Diesen Artikel teilen


0 Kommentare

Schreibe Deinen Kommentar

Bitte melden Sie sich an, um zu kommentieren. Anmelden | Registrieren

 

Disclaimer

DGAP-Adhoc Continental AG announces new outlook for fiscal 2020 DGAP-Ad-hoc: Continental AG / Key word(s): Forecast Continental AG announces new outlook for fiscal 2020 11-Nov-2020 / 07:44 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by …

Meistgelesene Nachrichten des Autors

Titel
Titel
Titel
Titel