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Continental Aktiengesellschaft (CON.DE)

XETRA - XETRA Delayed price. Currency in EUR
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90.82+7.56 (+9.08%)
At close: 5:35PM CEST
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Previous close83.26
Open84.18
Bid90.52 x 18200
Ask90.52 x 4300
Day's range84.14 - 90.94
52-week range51.45 - 133.10
Volume1,141,743
Avg. volume755,291
Market cap18.151B
Beta (5Y monthly)1.64
PE ratio (TTM)N/A
EPS (TTM)-13.66
Earnings date11 Nov 2020
Forward dividend & yield3.00 (3.60%)
Ex-dividend date15 Jul 2020
1y target est251.52
  • Continental braces for 20% drop in global car production
    Yahoo Finance UK

    Continental braces for 20% drop in global car production

    Auto supplier losses reflect COVID-19 impact on car companies.

  • EQS Group

    Continental Outperforms Its Markets in Historically Weak Second Quarter

    DGAP-News: Continental AG / Key word(s): Half Year Results 05.08.2020 / 08:30 The issuer is solely responsible for the content of this announcement. \- Global vehicle production in the second quarter at 12.3 million units (down 45%) \- Organic growth of -40 percent; sales of €6.6 billion (Q2 2019: €11.3 billion) \- Adjusted EBIT of -€634 million (Q2 2019: €865 million); adjusted EBIT margin of -9.6 percent (Q2 2019: 7.7 percent) \- Net income of-€741 million (Q2 2019: €485 million) \- Fixed costs reduced by more than €400 million in the second quarter \- CEO Dr. Elmar Degenhart: "At the low point of the worst economic crisis experienced by the automotive industry since the end of the Second World War, we outperformed our markets. We are keeping our targets firmly in sight. Our tough cost-cutting measures are having a quick and noticeable effect." \- Savings goals for 2020: cut fixed cash costs by more than 5 percent; reduce capital expenditure by more than 25 percent \- Continental is currently still refraining from providing a detailed outlook for the 2020 fiscal yearHanover, August 5, 2020. As expected, the sales and earnings of Continental were down substantially in the second quarter of 2020 due to the effects of the coronavirus pandemic. Continental nonetheless outperformed its markets. "A market crash in the automotive industry like the one we are experiencing now has not been seen since the end of the Second World War. In the first and second quarters of 2020, when the economic crisis in the automotive industry was at its worst, we outperformed the respective markets in China, the USA and Europe," said Dr. Elmar Degenhart, Continental CEO, when presenting the half-year figures on Wednesday in Hanover.Consolidated sales in the second quarter amounted to €6.6 billion (Q2 2019: €11.3 billion). Before changes in the scope of consolidation and exchange-rate effects, sales declined by 40 percent. At the same time, the global production of passenger cars and light commercial vehicles fell by about 45 percent in the second quarter to a total of 12.3 million units (Q2 2019: 22.1 million units), according to preliminary data. As a result of temporary plant closures due to the coronavirus pandemic, second-quarter production figures in Europe and North America were very weak, at 2.0 million units (-63 percent) and 1.3 million units (-69 percent), respectively. In contrast, production in China increased to 9 percent year-on-year thanks to government subsidy programs, with 5.9 million passenger cars and light commercial vehicles rolling off the lines.The adjusted operating result in the second quarter was -€634 million (Q2 2019: €865 million), corresponding to an adjusted EBIT margin of -9.6 percent (Q2 2019: 7.7 percent). Net income totaled -€741 million (Q2 2019: €485 million)."Continental is forward-looking and well prepared for crises, which is evident particularly in such a challenging situation. We are continuing to keep our targets firmly in sight," Degenhart said. Continental benefits from its cross-sectoral setup with a strong foothold in the industrial and replacement tire business, in addition to its automotive original equipment business. "Over the past few years, we have consistently strengthened our business with industrial and end customers. This makes us less susceptible to the ups and downs of the automotive industry," commented Degenhart. Continental's business with industrial and end customers was down 23 percent in the second quarter, demonstrating that it is substantially more robust than global vehicle production, which fell by 45 percent in the same period.Stricter cost discipline, lower capital expenditure and reduced working hours In light of the unexpected deterioration of the economic environment, Continental lowered its fixed costs by more than €400 million in the second quarter compared with the same period of the previous year. For the year as a whole, the company is well on the way to reducing fixed cash costs by more than 5 percent compared with the previous year. "Our balance sheet remains very sound, due in part to the savings measures that we initiated immediately. Our tough cost-cutting measures are having a quick and noticeable effect. We are thus giving ourselves room to maneuver and remain on track," said Degenhart.In the second quarter of 2020, Continental reduced its capital expenditure on property, plant and equipment, and software to €448 million (Q2 2019: €785 million). All business areas contributed to the decrease. As a result, the capital expenditure ratio was down to 6.8 percent after 7.0 percent in the comparative period of the previous year, despite the substantial decrease in sales. For the year as a whole, the company is planning to reduce its investments by more than a quarter compared to the previous year. At the end of the first quarter, Continental had estimated its savings potential for investments at more than 20 percent.Capital expenditure on research and development in the second quarter amounted to €809 million (Q2 2019: €917 million). As a result of the substantial decrease in sales, the ratio rose to 12.2 percent after 8.1 percent in the same period of the previous year.Since early June, all Continental plants worldwide have resumed production. Public life in some regions is still restricted by the coronavirus pandemic, however, and some plants' capacities are being used at greatly reduced levels in line with the substantially lower global demand. Depending on how the pandemic and its consequences continue to develop, it is possible that the company will once again have to make temporary adjustments to production at certain plants. At present, about 25 percent of all employees are working reduced hours worldwide. In Germany, around 30,000 employees worked an average of five days less in June.Still no detailed forecast due to economic uncertainty As announced at its Annual Shareholders' Meeting in mid-July, Continental anticipates a challenging market environment in the third quarter of 2020. Rising production figures for cars do indicate higher sales than in the second quarter of 2020, but they will most likely be much lower than in the third quarter of 2019. Economic uncertainty remains high. Though the business development of the Continental Group improved over the course of the second quarter, the economic environment continues to be characterized by considerable uncertainty due to the ongoing coronavirus pandemic. It therefore remains difficult to gauge possible further adverse consequences on production, supply chains and demand. Continental is currently still refraining from providing detailed forecasts for 2020 as a whole. However, the DAX company is expecting sales volumes, sales and adjusted EBIT to fall significantly short of the previous year's figures. The decline in earnings is also expected to lead to a considerable decrease in free cash flow in 2020 compared to the previous year.For the third quarter of 2020, Continental expects global vehicle production to fall substantially by -10 to -20 percent year-on-year. Market observers currently estimate that fewer than 70 million vehicles will be produced in 2020, which would correspond to a year-on-year decrease of more than 20 percent (2019: 89 million vehicles).Cash and cash equivalents at a very high level; capital expenditure reduced substantially In the second quarter of 2020, free cash flow before acquisitions and carve-out effects amounted to -€1.8 billion (Q2 2019: -€29 million). "The negative free cash flow in the second quarter is a direct consequence of the sharp decline in business due to the coronavirus pandemic," explained Wolfgang Schäfer, Continental CFO. The decline is primarily due to the lower EBIT figure versus the prior-year period as well as negative working-capital effects. The latter are the result of sales volatility in the final weeks of the second quarter and are expected to normalize again if the business trend stabilizes. On the second-quarter reporting date, Continental had cash and cash equivalents of €10.1 billion (March 2020: €6.8 billion). In May and June, Continental placed three bonds with a total volume of more than €2.1 billion and also expanded its credit facility with its core banks by €3 billion.Key figures for the Continental Group January 1 to June 30 Second Quarter € millions 2020 2019 Δ in % 2020 2019 Δ in % Sales 16,532.4 22,310.7 -25.9 6,619.7 11,264.0 -41.2 EBITDA 1,052.3 2,930.6 -64.1 -108.1 1,456.9 -107.4 in % of sales 6.4 13.1 -1.6 12.9 EBIT -392.8 1,576.6 -124.9 -829.1 753.3 -210.1 in % of sales -2.4 7.1 -12.5 6.7 Research and development expenses (net) 1,721.6 1,819.4 -5.4 808.6 916.6 -11.8 in % of sales 10.4 8.2 12.2 8.1 Capital expenditure1 923.4 1,426.3 -35.3 448.4 784.5 -42.8 in % of sales 5.6 6.4 6.8 7.0 Net income attributable to the shareholders of the parent -448.8 1,060.0 -142.3 -741.1 484.8 -252.9 Basic earnings per share in € -2.24 5.30 -142.3 -3.70 2.42 -252.9 Diluted earnings per share in € -2.24 5.30 -142.3 -3.70 2.42 -252.9 Adjusted sales2 16,411.8 22,307.3 -26.4 6,599.5 11,262.7 -41.4 Adjusted operating result (adjusted EBIT)3 -202.3 1,749.2 -111.6 -634.0 864.9 -173.3 in % of adjusted sales -1.2 7.8 -9.6 7.7 Free cash flow -1,802.3 -1,025.5 75.7 -1,812.7 -262.2 591.3 Net indebtedness as at June 30 5,923.7 5,665.8 4.6 Gearing ratio in % 41.1 31.3 Number of employees as at June 304 232,023 244,615 -5.1 1 Capital expenditure on property, plant and equipment, and software. 2 Before changes in the scope of consolidation. 3 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects. 4 Excluding trainees.Continental accelerates AI development using supercomputer "Vehicle production is currently on the decline, but the transformation of the automotive industry continues unabated. On the one hand, we have to cut costs rigorously, but on the other, we must continue to invest in the development of new technologies," Degenhart pointed out. In the advanced driver assistance systems business, for example, Continental is continually expanding its long-standing position as market leader.Last week, the technology company announced that since early 2020, it has been advancing the development of future technologies with a supercomputer that is unrivaled in the automotive industry. From this new computer cluster, the developers at Continental's locations around the world get the computing power and storage that they need for highly complex and data-intensive developments - including, in particular, those relating to artificial intelligence. This is required for the development of pioneering future technologies in assisted, automated and autonomous driving, for example. The new supercomputer from Continental is ranked according to the current list of TOP500 supercomputers as the top system in the automotive industry. Continental is thus accelerating its development, which leads in terms of technology, while also underlining its core competencies in software and networking as well as in the architecture of systems."Software is the oxygen of the industry, and we expect it to generate enormous profitable growth in the future. The reason is that there will be more and more functions in the vehicle," Degenhart stated with confidence. He pointed out that value creation with computer programs will increase accordingly, growing by double-digit percentages each year. "Here, we are in a great position as a software powerhouse with more than 20,000 software and IT experts," he added.For example, with the development of high-performance computers - the digital heart of modern vehicles - Continental has already secured lifetime sales exceeding €3 billion. A single customer alone will probably have received more than 2.5 million of such compact high-performance computers by 2022. This puts Continental among the front-running companies in this area of the industry. A particularly high-performance vehicle server was recently developed for Volkswagen. This In-Car Application Server (ICAS1) enables a high degree of vehicle connectivity for the new electric vehicles in VW's ID. model series - such as the ability to quickly and securely install safety updates via a wireless connection. By 2022, Continental expects more than ten further projects.Coronavirus bridge: innovative ways to safeguard productivity and employment "The transformation of the automotive industry and overcoming the coronavirus pandemic are huge challenges for all of us. They will lead to far-reaching changes, also at Continental. We are shaping these changes together with the workforce, searching for balanced and fair solutions that are in line with our values, strengthen our innovative prowess and maintain our viability as a company," explained Dr. Ariane Reinhart, Continental Executive Board member for Human Relations. "We understand the uncertainty felt by our employees and that some are concerned about their jobs. But we are going to make the most of our opportunities for the future, particularly in this crisis. In order to do this, we need a combination of comprehensive agreements with employee representatives as well as specific solutions for each of our locations that are affected," she added. It is all about building a "coronavirus bridge," with innovative approaches to help close a cost gap of several hundred million euros while at the same time safeguarding employment and productivity. "The reduction in working hours is a reasonable approach to safeguard production while gaining employment prospects and expanding upon them with training. The additional time should be used for training and education, which increases each individual's employability," she added.Key figures for the group sectors January 1 to June 30 Second Quarter Automotive Technologies in € millions 2020 2019 Δ in % 2020 2019 Δ in % Sales 6,740.4 9,578.8 -29.6 2,560.0 4,841.0 -47.1 EBITDA 139.6 1,067.8 -86.9 -287.3 562.3 -151.1 in % of sales 2.1 11.1 -11.2 11.6 EBIT -401.9 536.3 -174.9 -552.6 276.2 -300.1 in % of sales -6.0 5.6 -21.6 5.7 Research and development expenses (net) 1,153.4 1,215.3 -5.1 548.0 614.1 -10.8 in % of sales 17.1 12.7 21.4 12.7 Capital expenditure1 390.2 577.9 -32.5 196.6 316.0 -37.8 in % of sales 5.8 6.0 7.7 6.5 Number of employees as at June 302 93,936 96,939 -3.1 Adjusted sales3 6,726.6 9,577.6 -29.8 2,560.0 4,840.2 -47.1 Adjusted operating result (adjusted EBIT)4 -387.3 575.9 -167.3 -462.3 297.3 -255.5 in % of adjusted sales -5.8 6.0 -18.1 6.1 1 Capital expenditure on property, plant and equipment, and software. 2 Excluding trainees. 3 Before changes in the scope of consolidation. 4 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects. January 1 to June 30 Second Quarter Rubber Technologies in € millions 2020 2019 Δ in % 2020 2019 Δ in % Sales 6,933.2 8,889.3 -22.0 2,961.5 4,517.7 -34.4 EBITDA 942.3 1,539.5 -38.8 291.3 750.7 -61.2 in % of sales 13.6 17.3 9.8 16.6 EBIT 338.0 973.0 -65.3 -8.4 463.0 -101.8 in % of sales 4.9 10.9 -0.3 10.2 Research and development expenses (net) 223.5 238.3 -6.2 105.9 119.8 -11.6 in % of sales 3.2 2.7 3.6 2.7 Capital expenditure1 338.5 533.7 -36.6 174.3 288.3 -39.5 in % of sales 4.9 6.0 5.9 6.4 Number of employees as at June 302 99,490 104,795 -5.1 Adjusted sales3 6,826.4 8,887.1 -23.2 2,941.3 4,517.2 -34.9 Adjusted operating result (adjusted EBIT)4 416.2 1,070.2 -61.1 35.2 535.7 -93.4 in % of adjusted sales 6.1 12.0 1.2 11.9 January 1 to June 30 Second Quarter Powertrain Technologies in € millions 2020 2019 Δ in % 2020 2019 Δ in % Sales 2,960.2 3,967.0 -25.4 1,131.2 1,961.4 -42.3 EBITDA 25.2 371.4 -93.2 -91.3 185.4 -149.2 in % of sales 0.9 9.4 -8.1 9.5 EBIT -267.2 117.2 -328.0 -244.3 56.3 -533.9 in % of sales -9.0 3.0 -21.6 2.9 Research and development expenses (net) 344.7 365.8 -5.8 154.7 182.7 -15.3 in % of sales 11.6 9.2 13.7 9.3 Capital expenditure1 164.2 295.6 -44.5 60.0 164.3 -63.5 in % of sales 5.5 7.5 5.3 8.4 Number of employees as at June 302 38,150 42,412 -10.0 Adjusted sales3 2,960.2 3,967.0 -25.4 1,131.2 1,961.4 -42.3 Adjusted operating result (adjusted EBIT)4 -172.0 151.4 -213.6 -183.9 72.5 -353.7 in % of adjusted sales -5.8 3.8 -16.3 3.7 1 Capital expenditure on property, plant and equipment, and software. 2 Excluding trainees. 3 Before changes in the scope of consolidation. 4 Before amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects.Business outside of the automotive industry develops better in the second quarter Sales in the Automotive Technologies group sector amounted to €2.6 billion (Q2 2019: €4.8 billion), and the adjusted EBIT margin was -18.1 percent (Q2 2019: 6.1 percent). Organic sales growth came to -45.6 percent.The Rubber Technologies group sector achieved sales of €3.0 billion (Q2 2019: €4.5 billion) and an adjusted EBIT margin of 1.2 percent (Q2 2019: 11.9 percent). Organic sales growth came to -33.1 percent.In the Powertrain Technologies group sector, sales amounted to €1.1 billion (Q2 2019: €2.0 billion) and the adjusted EBIT margin was -16.3 percent (Q2 2019: 3.7 percent). Organic sales growth came to -40.8 percent.Continental develops pioneering technologies and services for sustainable and connected mobility of people and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent and affordable solutions for vehicles, machines, traffic and transportation. In 2019, Continental generated sales of €44.5 billion and currently employs more than 230,000 people in 59 countries and markets. Press contact Henry Schniewind Spokesman, Business & Finance Continental Phone: +49 511 938-1278 Mobile: +49 151 68864262 E-mail: henry.schniewind@conti.deVincent Charles Head of Media Relations Continental Phone: +49 511 938-1364 Mobile: +49 173 3145096 E-mail: vincent.charles@conti.de Press portal: www.continental-press.com Media center: www.continental.com/media-center Quarterly results: www.continental.com/quarterly-results Twitter: @conti_press * * *05.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. 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: 1110233 End of News DGAP News Service

  • EQS Group

    Continental AG: Preliminary Key Data for the Second Quarter of Fiscal 2020

    Continental AG / Key word(s): Quarter Results/Preliminary Results Continental AG: Preliminary Key Data for the Second Quarter of Fiscal 2020 20-Jul-2020 / 20:02 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. * * *Preliminary Key Data for the Second Quarter of Fiscal 2020 The financial results of Continental AG in the second quarter of fiscal 2020 are above current average analyst expectations. Based on preliminary data, key financial results of the second quarter of fiscal 2020 are as follows:\- Consolidated sales of the Group were €6.620 billion and the adjusted EBIT margin was -9.6%. Year-on-year sales growth before changes in the scope of consolidation and exchange-rate effects was -39.8%.\- Sales in Automotive Technologies were €2.560 billion and the adjusted EBIT margin was -18.1%. Year-on-year sales growth before changes in the scope of consolidation and exchange-rate effects was -45.6%.\- Sales in Rubber Technologies were €2.962 billion and the adjusted EBIT margin was 1.2%. Year-on-year sales growth before changes in the scope of consolidation and exchange-rate effects was -33.1%.\- Sales in Powertrain Technologies were €1.131 billion and the adjusted EBIT margin was -16.3%. Year-on-year sales growth before changes in the scope of consolidation and exchange-rate effects was -40.8%.\- Free cash flow before acquisitions and carve-out effects for the Group amounted to -€1.782 billion. This figure was -€29 million in the second quarter of fiscal 2019. The decline is primarily due to the lower EBIT figure versus the prior year period as well as negative working capital effects resulting from sales volatility in the last weeks of the second quarter. These effects are expected to reverse with an improvement in business activity.As at June 30, 2020, the Company had liquidity reserves totaling €10.144 billion, consisting of cash and cash equivalents of €2.456 billion and committed, unutilized credit lines of €7.689 billion.Though the business Continental AG showed substantial improvement through the course of the second quarter, the environment continues to be characterized by substantial uncertainty due to the ongoing COVID-19 pandemic. Therefore, it remains difficult to gauge possible adverse consequences on production, the supply chain and demand. For this reason, the Executive Board of Continental AG has decided to refrain from providing an outlook for the business year 2020 at this time.The Half- Year Financial Report for 2020 will be released on August 5, 2020."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 * * *20-Jul-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: 1097831 End of Announcement DGAP News Service

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