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"This is still a very decent result," said Continental CFO Wolfgang Schfer the Brsen newspaper. The company is in line with expectations in the fourth quarter. "We are very likely to reach our sales target of around € 44.5 billion."
Turnover, triggered by deteriorating conditions, especially in the key markets of Europe and China, had led to the profit warning in the summer.
The CFO of the DAX Group expects the weakness in the Chinese car market to continue in the first two quarters of 2019. The problems in Europe as part of the switch to the new WLTP exhaust test standard are also off the table. However, Schfer expects global passenger car and light commercial vehicle production to grow by 1 percent in the coming year.
Should higher US import rates be introduced on cars from Germany and the EU, the consequences are not easy to predict, says the Conti CFO. The commercial disputes could lead to greater reluctance among car buyers. "Such a buyback would hit us immediately."
Hope for Conti-dividend
The auto parts supplier and tire manufacturer also makes the shareholders hope in the dividend. "Of course, we know that the expectations in the capital market in an environment in which the share price has fallen, on a stable dividend payment," said Schfer the Brsen-Zeitung. "On balance, Continental was" very well "set up." We are one He added, "Total Return Stock," as of 2017, Continental had paid out $ 4.50 in dividends per share.
The share price of the group fell sharply after two profit warnings in the current year. In the fourth quarter, the group is "in line with expectations," said Schfer the sheet. The sales target of about 44.5 billion will Continental "in all probability reach". In August, Continental lowered its earnings forecast for the second time this year, as it was losing steam in China, among other things.
FRANKFURT Dow Jones & dpa AFX
Image sources: Nils Versemann / Shutterstock.com, Continental