CONTINENTAL AG

Continental posted adjusted EBIT of €570m in the second quarter, about 9% above consensus, and the tire division achieved an operating margin of 15.3%. CFO Roland Welzbacher warned that the raw-material cost advantage from the first half could turn into a headwind in the second half and that the tire margin would not be reached again. Production prospects for passenger cars and light commercial vehicles also deteriorated. The company announced a capital return of €2.5bn, but the cautious guidance sent the stock down about 2.1% to €70.83. » Más en de.investing.com

Continental achieved a stronger adjusted EBIT of €570 million in the second quarter thanks to larger, more expensive tires and favorable raw-material costs; the operating margin in the tire business was 15.3%. CFO Roland Welzbacher expects headwinds in the second half from higher crude oil prices and the Middle East conflict and forecasts an impact in the triple-digit million euro range. Net profit was almost halved due to the sale of business units, and the group adjusted its full-year target after the Contitech sale; the tire division remains a core area. Continental is continuing to pursue growth in large tires and to expand production in China. » Más en finanzen.net