Continental expects increased auto manufacturing within the second half of the yr as provide chains and semiconductor availability enhance, the corporate mentioned on Tuesday after reporting a heavy second-quarter loss.
The German auto components provider posted a web lack of 251 million euros ($256.05 million) for the April-June quarter damage by lockdowns in China, provide chain points in Europe, increased pursuits charges and impairment prices.
“We can’t be solely glad with our present enterprise outcomes – even when they’re as anticipated – however we’re optimistic for the second half of the yr,” Chief Monetary Officer Katja Duerrfeld mentioned in a press release.
On the building website of the brand new headquarters of the automotive provider and tire producer Continental
image alliance | image alliance | Getty Photos
Continental on Tuesday confirmed preliminary second-quarter outcomes it had launched on July 20, together with an adjusted EBIT margin of 4.4% and consolidated gross sales of 9.4 billion euros.
It expects an adjusted EBIT margin of 4.7-5.7% on gross sales of 38.3-40.1 billion euros for the yr, it mentioned.
Its outlook consists of further prices of round 3.5 billion euros, it mentioned, with freight prices for normal abroad delivery in some instances eight occasions increased than in earlier years.
In response it mentioned it was spreading its buying throughout a number of sources, stocking increased stock, sharing rising prices with prospects and focusing its efforts on extra premium merchandise.