Continental Adjusts 2024 Sales Forecast Amid Weak Demand

Continental, a German automotive and industrial supplier, has revised its sales forecast for 2024 due to low demand in Europe and North America. Despite this, it reported a strong third-quarter profit exceeding expectations. The company plans to spin off its automotive division by 2025.

German automotive and industrial supplier Continental announced another revision to its 2024 sales guidance on Monday. This marks the second adjustment this year, with the company citing weak demand from both the European and North American markets.

While Continental now predicts 2024 sales will range between 39.5 and 42 billion euros, a drop from the previous forecast of 40 to 42.5 billion euros, it attributes this decrease to downgrades in its ContiTech business.

Interestingly, the company reported an impressive third-quarter core profit of 873 million euros, exceeding consensus forecasts by 11%. The surge is credited to stringent price discipline and cost-cutting measures, particularly in its automotive division, which is slated for a spin-off by 2025, a move that had earlier prompted job cuts.

(With inputs from agencies.)