Shrink Profit for German Tire Major
03 November 2008
Auto parts and tire maker Continental AG said yesterday that its third-quarter net profit dwindled to almost nothing despite an increase in sales and said signs of a "drastic" slowdown have become evident. The company lowered its sales forecast and put non-urgent investments on hold.
The maker of brakes, electronics and other auto components, which is being bought by Schaeffler Group KG, earned 2.4 million euros (US$3.06 million) in the July-September period down from 251.5 million euros last year.
Sales, however, rose 51 percent to nearly 5.9 billion euros from 3.9 billion euros.
Hannover-based Continental said sales gains from what it called organic growth and from the consolidation of Siemens' VDO auto parts unit were offset by halting demand for automotive products such as tires as car makers slowed production and consumers held off on purchases.
"In the first half of the year, the weak market situation in North America was compensated by the favorable economic conditions in Europe and Asia," Chief Executive Karl-Thomas Neumann said. "In the last quarter, however, there were drastic signs of slowing in all markets." The company lowered its sales forecast for 2008 to 25 billion euros from 26.4 billion euros.
Source : english.chinabuses.com
Editor : Ida
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