22.08.2018
Continental AG DE0005439004
DGAP-Adhoc: Continental AG: Revision of Guidance for Fiscal 2018
DGAP-Ad-hoc: Continental AG / Key word(s): Change in Forecast/Profit Warning
Continental AG: Revision of Guidance for Fiscal 2018
22-Aug-2018 / 11:07 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Hanover, August 22, 2018. Lowered sales expectations, cost increases and
warranty claims are decreasing the adjusted operating result (adjusted EBIT)
in the third quarter of 2018. At present, sales of about EUR11 billion and
an adjusted operating result (adjusted EBIT) of more than EUR700 million are
expected for the corporation for the period from July 1 to September 30,
2018.
The aforementioned factors will also impact the fourth quarter, making it
necessary to revise the guidance for 2018 as follows:
* Consolidated sales this year will amount to approximately EUR46 billion
before exchange-rate effects. We previously expected a figure of around
EUR47 billion. We currently estimate that exchange-rate effects will
negatively impact sales by about EUR1 billion in 2018. Previously the
impact was estimated at more than EUR1 billion. After this revision, the
adjusted operating result (adjusted EBIT) will be more than 9%. More
than 10% was previously forecast.
* In the Automotive Group, we expect to achieve sales of approximately
EUR28 billion before negative exchange-rate effects, instead of about
EUR28.5 billion as had been previously forecast. We currently estimate
that exchange-rate effects will negatively impact sales in the
Automotive Group by about EUR0.5 billion in 2018. The adjusted EBIT
margin for the Automotive Group will be about 7% in 2018. Previously,
around 8.5% had been forecast. Warranty claims will reduce the reported
and the adjusted EBIT by a total of EUR150 million.
* In the Rubber Group, we expect to achieve sales of around EUR18 billion
before negative exchange-rate effects, instead of about EUR18.5 billion
as was previously forecast. We estimate that exchange-rate effects will
negatively impact sales in the Rubber Group by about EUR0.5 billion in
2018. The adjusted EBIT margin for the Rubber Group will be more than
13% in 2018. More than 14% was previously forecast.
* We are reducing the guidance for free cash flow before acquisitions and
before the outflow for the funding of the U.S. pension plans from about
EUR2 billion to around EUR1.6 billion in 2018.
* The other elements of the guidance issued on August 2, 2018, remain
unchanged, namely the impact from higher raw material costs amounting to
more than EUR50 million, the negative financial result of less than
EUR180 million, the tax rate of approximately 25%, the negative special
effects of EUR50 million, the amortization from purchase price
allocations of approximately EUR180 million, and the capital expenditure
ratio before financial investments of around 7%.
Furthermore, for Powertrain the figures estimated in April 2017 for 2019
sales (EUR10 billion) and EBIT (EUR850 million) will no longer be achieved.
They will be updated and revised in the course of the carve out of the
division.
The financial report for the first nine months of 2018 will be released on
November 8, 2018.
"Adjusted EBIT" and "EBIT" are defined in the Glossary of Financial Terms on
pages 38 and 39 of the 2017 Annual Report, which is available at
www.continental-ir.com.
Contact:
Person making the notification: Rolf Woller, Head of IR
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Language: English
Company: Continental AG
Vahrenwalder Straße 9
30165 Hannover
Germany
Phone: +49 (0)511 938-1068
Fax: +49 (0)511 938-1080
E-mail: [email protected]
Internet: www.conti.de
ISIN: DE0005439004
WKN: 543900
Indices: DAX
Listed: Regulated Market in Frankfurt (Prime Standard), Hamburg,
Hanover, Stuttgart; Regulated Unofficial Market in Berlin,
Dusseldorf, Munich, Tradegate Exchange; Luxembourg Stock
Exchange, SIX
End of Announcement DGAP News Service
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716329 22-Aug-2018 CET/CEST
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