Continental's Financial Roadblock: Navigating Weak Demand

German supplier Continental revises its sales forecast downward for 2024 due to declining demand in Europe and North America, despite surpassing third-quarter profit expectations. Sales are now projected at 39.5 to 42 billion euros, down from the prior estimate. Cost-cutting in the automotive division plays a crucial role.

German automotive and industrial giant Continental has once again revised its sales forecast for 2024, attributing the change to diminished demand across Europe and North America. Despite this, the company exceeded third-quarter core profit predictions.

The updated sales outlook now ranges from 39.5 to 42 billion euros, contrasting with the previous estimate of 40 to 42.5 billion euros. Factors influencing this adjustment include falling demand for passenger cars in Europe and tire replacement in North America.

The firm reported that its third-quarter core profit reached 873 million euros, 11% higher than anticipated. Continental credits stringent price control and cost-reduction measures within its automotive division for the profitable outcome.

(With inputs from agencies.)