Home » Economy » Slipping into the loss zone: Billions write-down tears Continental into the red

Slipping into the loss zone: Billions write-down tears Continental into the red

The automotive supplier and tire manufacturer Continental is expected to slide into the loss this year due to a billion-dollar special charge. In the third quarter, Conti posted impairments of around € 2.5 billion, the Dax Group announced.

These are based on the assumption that the current global production of passenger cars and light commercial vehicles will not improve significantly in the next five years. In addition, accruals for the recently presented Group restructuring amounting to 97 million euros were incurred.

The charges would result in a loss for the third quarter and full year attributable to shareholders. However, no material effects on the dividend proposal for the current year are to be expected.

Continental also wants to split off its drive business as a whole and make a note of the stock market. A possible partial listing is now no longer an option, as the Dax Group announced, following a resolution by the Executive Board. The plan for a so-called spin-off with stock exchange listing will be presented to the Annual General Meeting on April 30, 2020. The Supervisory Board also has to agree. For a long time, the company has been examining how it intends to deal with the division mentioned in Vitesco. Last September, Conti had referred to the barely foreseeable conditions for a partial listing in the coming year.

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