Continental Posts Higher Profit as Cost Cuts Offset Sales Pressure

Continental reported higher quarterly earnings as cost cuts and strong results at its key automotive and tires divisions mitigated revenue pressures and weakness at its ContiTech unit.

The German automotive supplier and tire company cut its full-year sales guidance for the second consecutive quarter on a worse-than-expected ContiTech performance, citing subdued industrial demand in Europe and North America that is lasting for longer than anticipated.

However, analysts pointed to an unchanged profitability outlook for Continental’s bigger auto business, which beat expectations alongside the tire segment. …

Source: The Wall Street Journal