Continental presented financial forecast for 2020

Continental AG presented its forecast for fiscal 2020 - less than two months before the end of the year.

The German group of companies, which in March withdrew its previous forecast due to uncertainty over the Covid-19 pandemic, said its management is now in a position to provide a forecast for the rest of the year.

Conti expects consolidated sales of around €37.5 billion, below the 2019 results (€44.5 billion). The company's adjusted profit margin will decline to 3%, down from 9.3% last year. The Continental Rubber business unit, which includes the tire business and ContiTech, is also expected to have annual sales of around 15.5 billion euros, down from 18 billion euros a year earlier.

The adjusted profit margin for the segment is projected to be around 10.5%, down from 12.5% ​​in 2019.

Continental does not report annual profits.

The new forecast, Conti notes, is based on assumptions that exchange rates in the fourth quarter of 2020 will not differ significantly from rates as of September 30, and that the ongoing Covid-19 pandemic will not entail new unexpected consequences.