Conti changes '08 earnings outlook downward

HANOVER, Germany (Sept. 16, 2008) -- Continental AG has revised its earnings expectations for fiscal 2008 downward in light of the “substantial worsening” of the vehicle markets in North America and Europe and the burdens from continually increasing raw material costs.

Conti now expects to report a pretax operating earnings margin of about 8.5 percent, down from 9.3 percent published earlier.

The company noted conditions surrounding the vehicle industry have in part worsened significantly in the third quarter from the good development in the first six months of the fiscal year. The rubber divisions are affected as well, Conti said, but not to the same extent.

The 8.5-percent earnings margin is before the adjustment for amortisation resulting from the purchase price allocation as well as integration and restructuring expense, Conti said.

From Rubber & Plastics News (A Crain publication)