Continental cuts sales forecast for second time this year
Cites weak industrial demand in Europe, N.America
Shares rise 5.6 on Q3 profit beat
Profit beat likely boosted confidence in automotive spinoff plansanalyst
Nov 11 Reuters German automotive and industrial supplier Continental cut its annual sales guidance for the second time this year on Monday, citing weak industrial demand in Europe and North America, but it beat third quarter profit expectations.
Continental39;s shares were up 5.6 at 0857 GMT after third quarter core profit, at 873 million euros 932.98 million, beat consensus by about 11.
The group39;s margin of 8.9 for the quarter also surpassed expectations of 7.9.
It said profit rose in response to price discipline and cost cutting in its automotive division, which it wants to spin off by the end of 2025.
Analyst Pal Skirta of Metzler said the result at the automotive division likely boosted confidence in Continental39;s spinoff plans, driving the firm39;s shares up.
Continental expects sales for 2024 to be between 39.5 billion and 42 billion euros, below its 40to42.5 billion euros guidance in August, but in line with sales expectations for the year in a companycompiled consensus.
It confirmed sales and earnings guidance for the automotive division, which last year accounted for almost half of sales.
Continental had already cut its sales guidance in August, citing weaker demand for passenger cars in Europe and for tyre replacements in North…