Weak European auto parts demand hampers Continental's second quarter
BERLIN, July 3 (Reuters) -Weak European demand for auto partswill weigh on Continental's CONG.DE second-quarter results, with strong demand growth in China and cost controls expected to take effectin the second half of the year, the company said on Wednesday.
In its final communication ahead of publishing quarterly results on Aug. 7, the German maker of auto parts and tires warned investors that the global market continued to be challenging.
"We only expect a very slight positive (sales)volume effect worldwide," the company wrote regarding its automotive sector. Cost controls and restructuring efforts would start to pay off significantly in the second half, Continental said.
In its automotive business, China was expected to drive growth, with the forecast for Europe likely to be at the low end of guidance, Continental said. In the tire business, the company expected to hit its EBIT margin guidance, while its ContiTech industrial division looked to benefit from cost-cutting.
In May, the company said it expected 2024 consolidated sales of between 41 billion euros ($44.23 billion) and 44 billion euros and an EBIT margin of 6% to 7%.
($1 = 0.9270 euros)
Reporting by Thomas Escritt; Editing by Rod Nickel
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