Technology major Continental has recorded a slow start in CY2019, which it says has been in an overall weak global environment. Powered by its technology portfolio, the company reported revenues of 11.0 billion euro (Rs 85,899 crore), a marginal growth of 0.3 percent, the adjusted EBIT margin was 8.1 percent (adjusted EBIT: €884 million or Rs 6,903 crore).
At the company’s annual shareholders’ meeting in Hanover, Continental’s CEO Dr Elmar Degenhart said: “Global car production was down substantially at the beginning of the year, as expected. That is why our solid results are all the more gratifying, thanks to our strong market position on the mobility markets worldwide. Our increased cost discipline also contributed to this achievement.”
For the first three months of 2019, the company says global automobile production was down by more than 6 percent YoY, according to preliminary figures. In contrast, the technology company’s organic growth (before changes in the scope of consolidation and exchange-rate effects) was down by only 2 percent.
The company continues to expect a market upturn in the second half of the year and is thus maintains its annual guidance issued at the beginning of January. In the current fiscal year, Continental is laying further important groundwork for its organisational realignment announced in July 2018. A crucial part of this is the transformation of its powertrain business into an independent group of legal entities, which Continental completed on schedule on January 1, 2019.
Since then, Continental has continued preparing for the possible partial IPO of its powertrain business, which in the future will be called Vitesco Technologies. It expects that the necessary conditions will be fulfilled toward the end of the second half of the year so that additional details can be provided to the capital markets. Once further technical and regulatory requirements have been completed, the company will be in a position to finalise the partial IPO, which it says depending on the market situation is expected from 2020.