BERLIN, Aug 7 Reuters Continental reported adjusted earnings above analysts39; expectations in its secondquarter results on Tuesday but lowered its annual outlook because of weaker passenger car demand, particularly in Europe.

The car parts supplier saw consolidated sales of 10 billion euros 10.91 billion with adjusted earnings before interest and taxes at 704 million euros, up 40.6. Its margin was 7.0, above expectations of analysts polled by the company of 6.5.

Despite warnings from the company last month that cost controls and restructuring efforts would only start to pay off significantly in the second half, Wednesday39;s statement said some measures were already having an effect.

Still, Continental lowered its sales outlook in each of its three major divisions and cut its margin forecast in the automotive sector to 2.53.5 from 34 previously, citing weak demand in Europe.

It now forecasts 2024 sales to be between 4042.5 billion euros 43.6446.37 billion, down from a previous forecast of 4144 billion euros.

The car parts supplier said on Tuesday it was considering a spinoff and subsequent listing of its automotive unit on the Frankfurt stock exchange, with an executive board decision expected in the fourth quarter.

1 0.9166 euros

Reporting by Andrey Sychev and Victoria Waldersee; Editing by Rachel More and Clarence Fernandez

Source Reuters