The automotive supplier and tire manufacturer Continental is expected to make losses this year because of a one-billion-dollar extra charge. In the third quarter, the company posted impairments of about 2.5 billion euros, as the Dax Group announced.
These are justified by the fact that the global production of passenger cars and light commercial vehicles will not improve significantly in the next five years. In addition, provisions for the recently announced Group restructuring amounting to 97 million euros were incurred.
Loss in the third quarter
The charges would result in a loss for the third quarter and full year attributable to shareholders. However, no material effects on the dividend proposal for the current year are to be expected.
Continental also wants to split off its drive business as a whole and make a note of the stock market. A possible partial listing is now no longer an option, as the Dax Group announced, following a resolution by the Executive Board. The plan for a so-called spin-off with stock exchange listing will be presented to the Annual General Meeting on April 30, 2020. The Supervisory Board also has to agree. For a long time, the company has been examining how it intends to deal with the division named Vitesco. Most recently, in September, Conti referred to the barely predictable conditions for a sub-listing in the coming year.