(Reuters) – German automotive and industrial parts maker Continental on Monday cut its annual revenue forecast for the second time this year, citing weak demand in Europe and North America, despite an operating profit quarterly performance above expectations.
Continental now expects its turnover for 2024 to be between 39.5 and 42 billion euros, compared to a range announced in August of between 40 and 42.5 billion euros.
This decline is linked to weaker demand for passenger cars in Europe and for replacement tires in North America.
However, its adjusted earnings before interest and taxes (Ebit) reached 873 million euros in the third quarter, exceeding analysts’ expectations by almost 11%, according to the consensus provided by the group.
According to the group, this result is linked to its price discipline and cost reduction in the automotive division, which Continental wants to split by the end of 2025.
Continental announced job cuts in this division at the start of the year.
(Writing by Chiara Holzhaeuser and Louis van Boxel-Woolf, Elena Smirnova, editing by Kate Entringer)
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