HANOVER (dpa-AFX) - German automotive supplier and tire manufacturer Continental AG (CTTAY.PK) reported Wednesday that its second-quarter net income attributable to the shareholders of the parent plunged to 484.8 million euros from last year's 822.1 million euros.
Earnings per share were 2.42 euros, lower than 4.11 euros a year ago.
EBIT declined to 753.3 million euros from 1.12 billion euros last year. Adjusted EBIT in the second quarter amounted to 868 million euros, down from 1.15 billion euros a year ago. This equates to a margin of 7.8 percent, lower than 10.2 percent in the prior year.
EBITDA declined to 1.46 billion euros from last year's 1.66 billion euros.
For the quarter, sales edged down 1 percent to 11.26 billion euros from 11.37 billion euros a year ago. Adjusted revenues were 11.08 billion euros, down from 11.36 billion euros last year.
Organic sales in the second quarter, adjusted for changes in the scope of consolidation and exchange-rate effects, was down 3.7 percent.
The global production of passenger cars and light commercial vehicles was down about 7 percent.
Looking ahead for the second half of the year, the company said it does not expect the headwind to ease, and does not currently envisage a market upturn in the short to medium term.
For the fiscal year, global production of passenger cars and light commercial vehicles is expected to decrease by about 5 percent year-on-year.
Continental's CEO Elmar Degenhart said, 'The current market environment is highly challenging. The key automotive markets of Europe, North America and particularly China are declining.'
Continental now anticipates that, year-on-year, the production of passenger cars and light commercial vehicles will be down 2 percent in the U.S.A., 3 percent in Europe, and 10 percent in China.
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