Continental sales fell 8.5 percent year-on-year to 8 billion euros in the third quarter, according to preliminary data published with Outlook Revision, as the supply crisis worsened.
see photosThe group’s automotive arm posted a loss with an operating margin of -2.3 per cent.
Major German auto parts maker Continental revised its outlook for 2021 as shortages in semiconductors and global supply chain disruptions hit the industry, the company said on Friday.
“The negative impact from cost inflation” for key inputs, including electronics and electromechanical components, as well as raw materials, was becoming more important, Continental said in a statement.
Shorter supplies of semiconductors and “supply chain-related uncertainties” mean the global car market will stabilize relative to 2020, a year ravaged by the coronavirus pandemic.
Group sales for the full year were now expected to be between 32.5 billion and 33.5 billion euros ($39 billion from 37.8 billion), up from previously estimated between 33.5 billion and 34.5 billion euros.
Continental’s operating margin (adjusted EBIT), a measure closely watched by investors, will now fall between 5.2 and 5.6 percent, with forecasts projected to land between 6.5 and 7 percent, the group said.
Group sales for the full year were now expected to be in the range of 32.5 billion to 33.5 billion euros ($37.8 billion to $39 billion).
The upheaval caused by the pandemic has led to global shortages in everything from wood to semiconductors and plastics, limiting production in the economy.
Germany’s major automotive sector has been particularly affected by shortages of computer chips, a key component in conventional and electric vehicles, forcing many German carmakers to halt production.
The European Automobile Manufacturers Association said last week that European new car sales in September fell to their lowest level since 1995.
Continental sales fell 8.5 percent year-on-year to 8 billion euros in the third quarter, according to preliminary data published with Outlook Revision, as the supply crisis worsened.
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The group’s automotive arm posted a loss with an operating margin of -2.3 per cent. Full quarterly results will be published on November 10.
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