Continental rises after pre-close comments on auto unit
** Shares in German auto parts and tires maker Continental CONG.DE jump around 6% in early Frankfurt trade
** A local trader says, citing a Bloomberg News report from the company's pre-close call, that the Auto unit has seen first boost from savings program and tire unit had continued tailwind from raw materials in Q2
** Continental did not immediately reply to a request for comment
** "Investors were mostly short into CON Q2 as especially a weak Auto unit was feared. The unit seem to have performed better than feared and so shorts will probably be covered," the trader says
** J.P.Morgan says in a Q2 preview note that after the pre-close call with the company and in line with the commentary during Q1 and the broker's conference, it expects revenues down 3% and a 7% group margin
** "The automotive division should benefit in Q2 from price increases, cost savings and R&D reimbursements bringing the first half auto margin close to the break even margin level" - JPM
** The stock, which has lost 29.9% YTD, is the top gainer in Germany's blue-chip index .GDAXI during the session
Reporting by Ozan Ergenay
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
