Logo of German tyre company Continental is pictured before the annual news conference in Hanover, Germany, March 9, 2021. REUTERS/Fabian Bimmer/File Photo
Continental (CONG.DE) reported a 7.1% rise in its adjusted operating result to 637 million euros($680.57 million) on Wednesday and slightly raised its outlook for the tires business off the back of a strong quarter.
The supplier now expects an adjusted earnings margin in the tires business of 12.5 to 13.5%, from 12-13% previously.
It adjusted the sales outlook for its cars sector slightly downwards to 20 billion euros from 21 billion previously because of the negative impact of currency exchange rates.
Continental said it had managed to increase prices after reporting in August it was in tough negotiations with customers.
It had also reduced inventories and would continue to do so in the fourth quarter, it said.
The automotive group sector, which reported a loss in the second quarter, improved its performance because of higher pricing, better cost efficiency and stabilised supply chains, the company said.
Sales rose in line with global car production and the sector’s adjusted earnings margin rose to 2.8%.
($1 = 0.9360 euros)
Reporting by Victoria Waldersee
Editing by Miranda Murray
