GERMANY: Conti forecasts Q4 improvement
Author: just-auto.com editorial team | 29 October 2009
Continental has reported a EUR1bn (US$1.48bn) third-quarter net loss, due largely to a massive write-down, although the company forecast a significant year on year improvement for the final three months.
Conti said it also plans to repair its balance sheet by no later than the end of March 2010 through a fresh injection of equity while it renegotiates a EUR3.5bn (US$5.2bn) loan payment. It also hopes to gain breathing space by persuading more than 50 creditors to delay the August 2010 tranche B payment of a syndicated loan.
Net debt dropped slightly to EUR9.46b (US$14.1bn), although this was still more than double its shareholder equity. The company said in a statement: "Owing to increasing capital expenditures in the fourth quarter and the seasonally atypical pattern in working capital requirements of late, one could see a renewed rise in net indebtedness at the year pulls to a close."
Adjusted operating profit rose 30% to EUR413m (US$617m) but an unexpected "goodwill impairment" of EUR876m (US$1.3bn) dropped it into the red as Conti continued to feel the effects of its debilitating power struggle with largest shareholder Schaeffler Group.
Reuters noted that speculation continued on whether Schaeffler was trying to torpedo a much needed injection of fresh capital at Continental in order to prevent its 90% stake being diluted.
Sectors: Components, Financial
Companies: Conti, Schaeffler
View next/previous articles
29 Oct 2009 -
Currently reading -
GERMANY: Conti forecasts Q4 improvement
29 Oct 2009 -
Related company research
Company Financials: Continental AG
IntroductionThe Company Financials offers insights into the financial performance of the company over last five years for about 1000 leading global companies. The datapack covers wealth of financial information relating to income statement, balance s...
Industrial Rubber Products NEW US industry forecasts for 2014 & 2019
This study analyzes the US market for industrial rubber products. Specific products covered include mechanical rubber goods (e.g., vibration control components, body seals and wiper blades), hose (e.g., vehicular, fluid power, water, air and other in...
Automotive Sensor Technologies: Global Markets
This report provides the global market status, including data for 2008, estimates for 2009, and projections, with compound annual growth rates (CAGRs), through 2014, plus descriptions of various types of automotive sensor technologies, with current a...
Related articles
RESEARCH ANALYSIS: Review of tyres
Over the last two decades, the popularity of sport utility vehicles, minivans and cross-over vehicles has steadily increased, prompting manufacturers to redesign their tyres. Matthew Beecham rolls out just-auto's annual review of tyres, reporting on the ways in which manufacturers are improving tyre dimensions, weight, rolling resistance, noise, and fuel efficiency.
GOLDING’S TAKE: Renault-Nissan-Mercedes: less scale, more polish
Clear as daylight when you look at it: Nissan needed help with the world's dreariest luxury brand, the Invisibiliti. Daimler needed help with the cost of becoming a full-range manufacturer and dealing with Smart which is well past its best.
There are currently no comments on this article
Be the first to comment on this article