Continental AG: Impairments, Restructuring Expenses To Result In Negative Value For Q3 Reported EBIT

(RTTNews) - Continental AG (CTTAY.PK) reported preliminary consolidated sales of the Group for the third quarter of fiscal 2020 of EUR 10.295 billion, versus EUR 11.103 billion in the prior year quarter. Adjusted EBIT margin for the quarter was 8.1%.

Sales in Automotive Technologies declined to EUR 4.101 billion, whereas Sales in Rubber Technologies was down slightly to EUR 4.333 billion. Sales in Powertrain Technologies were EUR 1.909 billion.

Continental AG said its financial results in the quarter are above current average analyst expectations. However, the company expects impairments and restructuring expenses to result in a negative value for reported EBIT and also result in a negative value for net income attributable to shareholders.

The company expects to recognize goodwill impairments of EUR 649 million in the Vehicle Networking and Information business area. Additionally, restructuring expenses and asset impairments that are part of the expanded "Transformation 2019-2029" structural program resulted in expenses of EUR 687 million in the quarter.