Continental’s second-quarter adjusted operating profit fell 10 percent as the auto parts maker raised spending on production and R&D capacities, but the company slightly lifted its sales outlook on growing demand for electric-car components.
Adjusted earnings before interest and tax (EBIT) declined to 1.16 billion euros ($1.37 billion), near the low-end forecast of 1.15 billion in a Reuters poll of analysts.
But the world’s second-largest automotive supplier raised its full-year sales guidance by 500 million euros to more than 44 billion euros and stood by its profit forecast which includes an adjusted EBIT margin target of 10.5 percent.
Continental, which makes driver-assistance technology, fuel-injection systems and vehicle tires, said it expects about 450 million euros in raw material cost headwinds until the end of the year, 50 million euros less than previously forecast.
Source: Tech CNBC
Continental second-quarter profit falls, raises fiscal year sales outlook