A slowing auto sector prompted profit warnings from supplier Continental and pai...
FILE PHOTO: Jungheinrich logo is pictured at the 'Bauma' Trade Fair for Construction Machinery, Building Material Machines, Mining Machines, Construction Vehicles and Construction Equipment in Munich, Germany, April 8, 2019. REUTERS/Michaela RehleIt marked a fourth profit warning from Continental in 16 months, while French rival Faurecia on Tuesday stuck to its guidance.
“The main reason is the continued decline in the global production of passenger cars and light vehicles,” Continental said, adding that car production will likely drop by 5% rather than remain flat.“The market is telling us that in the short run, the worst has been priced in,” said Evercore ISI analyst Arndt Ellinghorst.
“The magnitude of the cut is worse than we were expecting and bodes poorly for the remainder of earnings season and 2020 outlooks.”Duerr, which produces woodworking equipment and paint systems for the auto industry, said lower payment receipts from the auto sector had eaten into its free cashflow in the first half.
The company, which is due to release first-half results on August 7, said its EBIT margin guidance of 7%-8% for 2020 is under review.“This is due to the gloomier macroeconomic environment and the related current developments in the market for material handling equipment,” said Jungheinrich, which is due to release results on August 8.Our Standards:
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