Continental’s gross sales within the third quarter fell 8.5 % year-on-year to eight billion euros within the third quarter, based on preliminary information revealed with Outlook Revision, as the provision disaster worsened.
see imagesThe group’s automotive arm posted a loss with an working margin of -2.3 per cent.
Major German auto elements maker Continental revised its outlook for 2021 as shortages in semiconductors and world provide chain disruptions hit the business, the corporate mentioned on Friday.
“The negative impacts from cost inflation for key inputs, including electronics and electromechanical components,” in addition to uncooked supplies, had been changing into extra vital, Continental mentioned in an announcement.
Shorter provides of semiconductors and “supply chain-related uncertainties” imply the worldwide automotive market will stabilize relative to 2020, a 12 months ravaged by the coronavirus pandemic.
Group gross sales for the complete 12 months had been now anticipated to be between €32.5 billion and €33.5 billion ($39 billion from $37.8 billion), up from beforehand estimated between €33.5 billion and €34.5 billion.
Continental’s working margin (adjusted EBIT), a measure carefully watched by traders, will now fall between 5.2 and 5.6 %, with forecasts projected to land between 6.5 and seven %, the group mentioned.
Group gross sales for the complete 12 months had been now anticipated to be within the vary of 32.5 billion to 33.5 billion euros ($37.8 billion to $39 billion).
The upheaval attributable to the pandemic has led to world shortages in every thing from wooden to semiconductors and plastics, limiting manufacturing within the financial system.
Germany’s main automotive sector has been notably affected by shortages of pc chips, a key part in standard and electrical autos, forcing many German carmakers to halt manufacturing.
The European Automobile Manufacturers Association mentioned final week that European new automotive gross sales in September fell to their lowest stage since 1995.
Continental’s gross sales within the third quarter fell 8.5 % year-on-year to eight billion euros within the third quarter, based on preliminary information revealed with Outlook Revision, as the provision disaster worsened.
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The group’s automotive arm posted a loss with an working margin of -2.3 per cent. Full quarterly outcomes can be revealed on November 10.
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With inputs from NDTV
