|Bid||125.28 x 18200|
|Ask||125.30 x 4300|
|Day's range||123.32 - 125.92|
|52-week range||103.62 - 157.40|
|Beta (3Y monthly)||1.37|
|PE ratio (TTM)||N/A|
|Earnings date||12 Nov 2019|
|Forward dividend & yield||4.75 (3.85%)|
|1y target est||251.52|
European stocks ended flat on Monday as a spurt of defensive buying over uncertainty surrounding U.S.-China trade talks helped temper losses in the auto sector. The pan-European STOXX 600 index finished little changed, after having spent most of the session in negative territory. The European automobiles and parts sector dropped 2.1%, its steepest fall in about four weeks, with Germany's Volkswagen leading declines after it slashed its operating profit and sales growth outlook due to slowdown in the auto sector.
The big shareholder groups in Continental Aktiengesellschaft (ETR:CON) have power over the company. Large companies...
Mixed earnings reports kept a lid on European stocks, with London's midcap index suffering from doubts over whether British lawmakers will back the government's Brexit bill on Tuesday. The pan-European STOXX 600 finished up just 0.1%, with a weaker pound helping London's exporter-laden FTSE 100 outperform with a 0.7% gain. The FTSE 100 was also lifted by a 24% jump in food delivery firm Just Eat after Dutch internet conglomerate Prosus made an unsolicited $6.3 billion cash bid.
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. Mario Draghi's statement about "mild signs" of overvaluation in the euro zone financial and property markets sent jitters through markets late this afternoon, and probably wasn't what traders wanted to hear ahead of a potential Brexit "Super Monday" of trading. It's impossible to know what will happen in the UK parliament tomorrow, but there's little doubt that the Brexit saga has never disappointed so far in terms of drama.
* Renault down 12% Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. A profit warning sent Renault on track for its worst day in over three years but surprisingly, Brexit or the trade war weren't to blame. Renault said turmoil in emerging markets - Argentina and Turkey - caused the setback, fuelling fresh political worries to investors who so far were mainly concerned with the spat between the U.S. and China and the UK's ongoing saga to leave the EU.
* Danone, Thales fall 5-7.7% Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. A final Brexit deal approved by the parliament could bring fresh capital to European equities, but it is too soon to declare love to the UK after the three-year impasse has sapped companies' appetite and financial firepower to invest in growth. Berstein says a final Brexit deal if approved tomorrow will bring capital into European equities and it's moving to overweight for the region, but it has cautioned that earnings growth is still expected to be below zero over the next 12 months.
* Danone, Thales fall 4-6% Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. Warnings from Renault, Thales and Danone have cast a pall over European stocks this morning, sending the STOXX 600 down 0.1% and reinforcing concerns about the health of corporate Europe as Q3 earnings season kicks off and the U.S.-China trade spat dents demand for everything from hotel rooms to cars.
Is Continental Aktiengesellschaft (ETR:CON) a good dividend stock? How can we tell? Dividend paying companies with...
(Bloomberg Opinion) -- In the darkest days of the 2009 recession, Germany’s industrial output was collapsing at an annual rate of more than 20%. An unfathomable implosion but one that thankfully ended almost as quickly as it started.Some 10 years on, a crisis is brewing once again in the country’s industrial heartlands. The pain could prove more enduring this time.So far the problems aren’t nearly as acute as in 2009; industrial production fell by a comparatively modest 4.2% in July. The worry, though, is that demand is being sapped by a mix of both cyclical and longer-lasting structural factors such as the demise of diesel and the shift to electrical vehicles. Trump’s trade wars and Brexit aren’t helping. Germany’s industrial sector contributes more than one-fifth of GDP and is usually a huge asset. Right now this export engine is pulling the economy down. Signs of distress are everywhere. German manufacturing activity is at a decade low, according to IHS Markit’s purchasing manager’s index. The Ifo Institute estimates that more than 5% of manufacturing companies have cut working hours and about 12% expect to do so during the next three months. German machinery orders declined 9% in the first six months of the year, according to the VDMA association, which represents the country’s engineers. In chemicals and pharmaceuticals, domestic production fell 6.5% in the first half of the year, while domestic car output has fallen 12% this year. Auto exports have dropped 14%. ThyssenKrupp AG, a former industrial jewel that makes everything from steel to submarines to car parts, is in crisis. It’s burning cash, weighed down by debt and has parted company with two chief executives in the space of 14 months. The chemicals giant BASF is cutting 6,000 jobs and has warned on profits.Meanwhile, the German carmakers BMW AG and Daimler AG have issued profit warnings as tighter emission rules oblige them to keep spending heavily. Their suppliers are the ones really hurting though. At least three — Eisenmann, Weber Automotive and a subsidiary of Avir Guss — have filed for insolvency in recent weeks and investors are betting the pain will spread more widely.The list of manufacturing heartache goes on. Debt-laden wiring and cable company Leoni AG is among the Germany’s most shorted stocks. The shares have lost two-thirds of their value over the past year and this is hardly unique.The company that best illustrates this slow-burn crisis is Continental AG. Last week the tire and car parts titan announced a massive restructuring, which it said would affect 20,000 jobs over the next decade, or some 8% of the workforce. Explaining its decision, the manufacturer warned of an “emerging crisis in the automotive industry.” Demand is weak and technological requirements are shifting fast. In future it will need more software engineers but fewer people building components for gasoline and diesel engines.Conti’s great rival Robert Bosch GMBH has a big diesel technology business and is preparing for upheaval too. Its chief executive officer Volkmar Denner told Sueddeutsche Zeitung last month that he expects autos production to stagnate. “That’s different from the past when it almost always went up. The tailwind is gone,” he said.With luck these grim warnings will compel the government to reconsider its demand-sapping commitment to a balanced budget. Last week the head of the BDI industry lobby group urged Berlin to consider additional borrowing to fund public investment — a once unthinkable heresy but one that’s common sense when even 30-year German debt yields nothing.However, unlike in 2009 when a domestic car scrappage scheme boosted demand, Germany can’t easily buy itself out of trouble this time. Tens of thousands of well-paid industrial jobs face obsolescence because of the demise of the combustion engine. Electric vehicle drivetrains have far fewer parts and the process is less labor intensive.Germany’s economic power was built on the back of its excellent gasoline and diesel cars. Their inevitable demise puts the country’s position as the “engine of Europe” under threat.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- America’s automakers hit rock bottom in the eyes of the public when their executives went to Washington in 2008 to beg for a bailout — in corporate jets.Now it’s the German car industry’s turn to suffer an image crisis and, as with General Motors Co. and Chrysler a decade ago, it couldn’t be happening at a less auspicious moment. Amid trade wars and plunging China sales, the number of cars rolling off Germany’s production lines has dropped by 12% this year and exports by 14%. European auto sales fell 3% in the first eight months of 2019.(1) With demand expected to remain weak for a couple of years, the German parts supplier Continental AG isn’t ruling out cuts to working hours and jobs.It’s a bad time to be having a public relations nightmare too, but that is what’s happening in the country that invented the internal combustion engine. This month’s Frankfurt Motor Show was meant to give Germany’s mighty auto industry a platform to show off its expensive plans to build more electric vehicles.Instead, many international carmakers chose to stay away (some to save money) and Karl-Thomas Neumann, the ex-boss of Opel/Vauxhall, declared the event a “huge fail.” Compounding the misery, Daimler AG’s Mercedes, BMW AG and Volkswagen AG were upstaged by climate protesters who accused them of not doing enough to end their addiction to diesel and gasoline engines.Things had already got off to an ugly start. On the eve of the show four pedestrians were struck and killed by a sport utility vehicle in Berlin, prompting a fierce debate about the “social utility” of these gas-guzzling, tank-like cars. Featuring a picture of a Porsche SUV on its cover this week, Der Spiegel magazine declared a “new object of hate.” I’ve written before about the industry’s dependence on very profitable SUVs and the risk of a backlash.Meanwhile, the organization that one might usually expect to defend the German car giants — the VDA lobby group — was preoccupied with the abrupt resignation of its president, Bernhard Mattes. This fueled speculation that the industry was unhappy about its loss of political influence and increasing stigmatization.The German car industry provides more than 800,000 jobs in the country and it accounts for a big chunk of its manufacturing production and exports. Past governments fought hard to protect their industry crown jewel from troublesome regulations. That’s no longer always the case.First, the Volkswagen diesel emissions scandal made it unwise for politicians to go easy on companies that put profits above public health. And second, Germans have become alarmed by climate change and the industry’s role in that. The average emissions of new vehicles sold(3) climbed for the second year in a row last year, in part because of SUV sales. That’s one reason why Germany is set to miss its 2020 carbon pollution reduction targets. Passenger cars account for about 11% of its greenhouse gas emissions.(2)Stringent European Union emission targets, and massive fines for non-compliance, have been put in place already. A German federal government led by the Greens (not unimaginable given the party’s poll surge) would be tougher still. After the deadly accident in Berlin, there were calls to ban SUVs from cities.The average age of a new car buyer in Germany has climbed to 53, suggesting that the industry may be looking at a difficult future. Yet claims that Germans have fallen out of love with the automobile feel overblown. They still bought about 3.4 million new vehicles last year, pretty decent by historic standards. About 95% of them had a combustion engine. More than one-quarter were SUVs. Nor does the government have any desire to kill its golden goose. Earlier this year officials rejected attempts by campaigners to mandate a speed limit on the autobahn.With this contradiction between the public’s anxiety about climate change and its fondness for big vehicles, it’s not surprising that the government and carmakers are struggling to keep everyone happy. Riding a bike and car-sharing have become a genuine alternative in cities such as Berlin. But for those who still feel they need a car, electric vehicles tend to be more expensive and their driving range can be limited (for now, at least). The climate package the German government is due to announce on Friday will doubtless try to address this by including more incentives for electric vehicles and infrastructure.As the industry wrestles with such epochal challenges, it helps that Germany’s automakers have all recently appointed new bosses. They’re far from united, however, on how aggressively to abandon the combustion engine. Volkswagen is going “all-in” on battery cars (it’s targeting 40% of electric sales by 2030), while BMW is more cautious. The latter thinks hydrogen fuel-cells might have a future, though VW isn’t a fan.Yet even VW plans to use the profit from selling large SUVs such as its three-row “Atlas” to fund investments in green alternatives.At last week’s show in Frankfurt, electric vehicles like the Porsche Taycan and Volkswagen ID3 sat alongside gas-guzzling monsters like the BMW X6 and Mercedes AMG GLE Coupe. With the climate crisis intensifying, the industry’s split personality is getting more incongruous and indefensible by the day.(1) It's not all bad - the German market has actually expanded slightly so far this year.(2) In terms of grams of CO2 per km(3) See hereTo contact the senior editor responsible for Bloomberg Opinion’s editorials: David Shipley at email@example.com, .Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Today we'll look at Continental Aktiengesellschaft (ETR:CON) and reflect on its potential as an investment...
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Germany is at a crossroads, and nowhere will that be more evident than at the Frankfurt auto show this week.Despite sleek new electric models like the Porsche Taycan, the traditional showcase of German automotive excellence risks becoming a platform for protest rather than preening, drawing attention to a generation of young consumers more likely to demonstrate against the car’s role in global warming than shop for a new VW, BMW or Mercedes-Benz.Autos have made Germany into a global manufacturing powerhouse, but pollution concerns -- intensified by Volkswagen AG’s 2015 diesel-cheating scandal -- have sullied the reputation of a product that once embodied individual freedom. More recently, trade woes and slowing economies have hit demand. The consequence is Germany’s car production slumping to the lowest level since at least 2010.“Investors have been fearful about the industry’s prospects for a number of years, and the list of things to worry about doesn’t seem to be getting shorter,” said Max Warburton, a London-based analyst with Sanford C. Bernstein. “There is a general sense that things are about to get worse.”The end of the combustion-engine era and car buyers more interested in data connectivity than horsepower threaten Germany’s spot at the top of the automotive pecking order. Signs of trouble abound. In addition to numerous profit warnings this year, Mercedes maker Daimler AG delayed a plan to expand capacity at a Hungarian factory, parts giant Continental AG has started talks to cut jobs, and automotive supplier Eisenmann filed for insolvency.The car’s fragile standing was evident in the reaction to a deadly accident in Berlin on Friday evening when a Porsche SUV crashed into a group of pedestrians. Stephan von Dassel, the mayor of the district where the incident took place, said on Twitter that “such tank-like vehicles” should be banned in the city.Germany is teetering on the brink of recession, and the auto industry is pivotal to the economy’s health. Carmakers such as Volkswagen, Daimler and BMW AG as well as parts suppliers like Robert Bosch GmbH and Continental employ about 830,000 people in the country and support everything from machine makers to advertising agencies and cleaning services. With factories from Portugal to Poland, the importance of the sector radiates across Europe as well.With emissions regulations set to tighten starting next year, concerns are mounting that companies across the country’s industrial landscape are ill-equipped to deal with the technology transition resulting from climate change and increasing levels of digitalization. IG Metall organized a demonstration in June, with more than 50,000 people rallying in Berlin, to draw attention to the risk of widespread layoffs from what Germany’s biggest industrial union calls “the transformation.”“Far too many companies stick their heads in the sand and rest on their laurels,” IG Metall Chairman Joerg Hofmann said. “If companies continue to act so defensively, they’re playing roulette with the futures of their workers.”The concern is that the future of Germany’s car towns could look something like Ruesselsheim. The home of the Opel brand, which once rivaled VW as the German leader, has faded along with the carmaker’s performance. After years of losses, it was sold in 2017 by General Motors Co. to France’s PSA Group, which is slashing the Opel’s 20,000-strong German workforce by nearly a fifth.“Everybody in Ruesselsheim is worried,” said Servet Ibrahimoglu, owner of a kebab restaurant down the street from Opel’s factory, adding that his business has dropped by a third. “Before at lunchtime, this place was full. Now there’s no one.”The auto industry’s efforts to adapt to the risks will be on display in Frankfurt, and the stakes couldn’t be higher for models like the VW ID.3. The battery-powered hatchback is the auto giant’s first effort in an aggressive push into electric cars, which will make its debut at the Germany’s premier auto exhibition.Under bright lights and blaring music, the show is a throwback to the auto industry’s glory days, but it’s fading as public interest in old-school car show wanes. Toyota, Volvo and Ferrari are among the 30 brands skipping the show. For those still there, the displays will predominantly feature traditional gas guzzlers and other cash cows. Land Rover will unveil a resurrected version of the Defender, the British brand’s iconic offroader.“Instead of presenting new mobility concepts for the future, we’ll see lots of SUVs on stands that have become few and far between,” said Ferdinand Dudenhoeffer, director of the University of Duisburg-Essen’s Center for Automotive Research. “The recession in the global auto business is forcing savings cuts for car manufacturers and suppliers, along with a rapid loss of attractiveness of the classic ‘analog’ car shows.”Make or BreakWhere German brands once tried to outdo one another with outlandish displays like indoor tracks and multistory exhibition spaces, the main drama may take place outside Frankfurt’s sprawling fairgrounds. Greenpeace and Germany’s BUND have called for a mass march on the site on Saturday, joined by groups of cyclists setting off from around Frankfurt to underscore their call for the end of the combustion engine. Organizers are expecting at least 10,000 people. “We’re in the middle of a climate crisis,” said Marion Thiemann, transport-policy expert at Greenpeace. “The biggest problem is the automobile industry.”Despite doubts from environmentalists, automakers have gotten the message that they’re facing a make-or-break moment. The industry is spending billions of euros to develop cleaner vehicles and counter the emergence of ride-sharing services like Uber Technologies Inc., which has a market value equivalent to Daimler, the inventor of the automobile.“I’m absolutely convinced that carmakers will adapt to the situation,” BMW’s labor head Manfred Schoch said during a testy panel discussion with activists in Berlin last week. “Those that don’t will go out of business.”(Adds comment from activist in third-to-last paragraph)\--With assistance from Kristie Pladson, Andrew Blackman and William Wilkes.To contact the reporters on this story: Christoph Rauwald in Frankfurt at firstname.lastname@example.org;Carolynn Look in Frankfurt at email@example.com;Elisabeth Behrmann in Munich at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Palazzo at email@example.com, Christoph Rauwald, Chris ReiterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Today we're going to take a look at the well-established Continental Aktiengesellschaft (FRA:CON). The company's stock...
Markets have waited all week for Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole, and today is the day - he speaks at 1400 GMT. Asian shares inched up and European markets are set to open higher. Currency markets remain focussed on the yuan, which slid as low as 7.0992 per dollar, its weakest since March 2008.
Today we are going to look at Continental Aktiengesellschaft (FRA:CON) to see whether it might be an attractive...
Since Continental Aktiengesellschaft (FRA:CON) released its earnings in March 2019, analyst forecasts appear to be...
Today we'll take a closer look at Continental Aktiengesellschaft (FRA:CON) from a dividend investor's perspective...
Nissan Motor Co unveiled its biggest restructuring plan in a decade, axing nearly a tenth of its workforce and flagging possible plant closures to rein in costs that ballooned when Carlos Ghosn was CEO. The cuts announced on Thursday followed a collapse in Nissan's quarterly profit, highlighting how a crisis - brought about by sluggish sales and rising costs - is deepening at Japan's No. 2 automaker in the wake of a financial misconduct scandal over Ghosn. The dismal quarter will pile pressure on Chief Executive Hiroto Saikawa, who has been tasked with shoring up the automaker's performance at a time when the industry is struggling worldwide.
Volkswagen Group shares rose 2% after the carmaker posted a 30% rise in second-quarter operating profit despite a drop in vehicle sales as rising demand for sports utility vehicles and premium brands boosted margins. Volkswagen bucked a trend of falling demand for passenger cars by launching a range of higher-margin sports utility vehicles at a time when demand for sedans is falling.
ABB Ltd on Thursday warned that slowing demand from automakers in China, its second-biggest market, was hitting its robotics business. "In the robotics and discrete automation market we saw significant decline in business," Chief Financial Officer Timo Ihamuotila told reporters, blaming weaker demand from automakers. ABB said robotics and discrete automation sales fell 9% and orders were down 14% in the second quarter to June 30.
"You're having good results from a variety of companies and that has put a positive spin on the opening," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. The International Monetary Fund cut its global growth forecast through 2020 over concerns about the protracted tariff spats between the United States and its trading partners and the prospect of a disorderly Brexit. The European STOXX 600 benchmark rose over 1%, helped by a 6% surge in automakers and growing certainties of policy easing from the European Central Bank and the U.S. Federal Reserve.