Conti cautious despite ‘substantial’ business uptick

Hanover, Germany – Continental AG’s business situation improved “substantially” over the second quarter of 2020, the Hanover-based group said in a 20 July trading update.

While reporting year-on-year declines across all business units for the three months to 30 June, Continental said its performance was “above current average estimates of analysts.”

Nevertheless, uncertainty remained about the Covid pandemic, which had caused double-digit sales declines at all business segments, including Rubber Technologies.

The unit, comprising Continental’s Tires and ContiTech businesses, achieved sales of €2.9 billion during the quarter, down 34% compared to the €4.5 billion reported in 2019. Segment adjusted EBIT margin was 1.2%.

This was a slightly better performance than that of the group as a whole – consolidated sales down 41% to €6.6 billion for the three-month period.

In summary, Continental said it remained “difficult to gauge possible further adverse consequences [of Covid-19] on production, the supply chain and demand.”

As a result, the group would not provide an outlook for the 2020 business year.

Continental will report its interim report for the first half of 2020 on 5 Aug.