Suggestions
    Go directly to
      Ad-hoc
      October 17, 2016

      Continental Changes Outlook for Fiscal 2016

      EBIT of the Automotive Group is expected to be significantly lower than the previous year’s level.

      • Potential expenditure for warranties and pending antitrust proceedings and
      • the aftermath of three earthquakes in Japan as well as high R&D advances

      will have a negative impact on Automotive Group’s reported and adjusted EBIT for fiscal 2016 of around €480 million and on the corporation’s outlook, which was last changed on August 3, 2016.

      Hanover – Over the past few days, several isolated circumstances have resulted in the following situation:

      The Chassis & Safety and Interior divisions are anticipating a negative impact of around €390 million due to warranties for products, the majority of which were supplied between 2004 and 2010, and due to  potential expenditures for pending antitrust proceedings.

      The situation of one of our microcontroller suppliers has become even worse due to the latest earthquake on August 31, 2016, in the Kumamoto region of Japan. As a result, the Interior division is anticipating a loss in sales in the current year amounting to at least €100 million (previously expected: €50 million). EBIT will be impacted by around €50 million due to special cargos, product adjustments and increased manufacturing costs.

      R&D advances which are higher than expected further impacted the Interior and Powertrain divisions by roughly an additional €60 million. Consequently, the adjusted EBIT margin of the Powertrain division in 2016 will be below the previous year’s level of 5.7 percent.

      These burdens can only be partially absorbed. In aggregate, these circumstances result in a negative effect on the Automotive Group’s reported and adjusted EBIT of around €480 million.

      Effects on the outlook for the corporation, which was previously amended on August 3, are as follows:

      • Despite the situation in Japan, the sales forecast for the corporation is still confirmed at around €41 billion before exchange-rate effects
      • The adjusted EBIT margin for the corporation will be over 10.5 percent in the current year (previously over 11 percent)
      • The sales forecast for the Automotive Group is confirmed at around €25 billion before exchange-rate effects
      • The outlook for the adjusted EBIT margin of the Automotive Group has been lowered to over 6.5 percent (previously over 8.5 percent)The outlook for the adjusted EBIT margin of the Automotive Group has been lowered to over 6.5 percent (previously over 8.5 percent)
      • The outlook for the Rubber Group (sales over €16 billion before exchange-rate effects and adjusted EBIT margin over 17 percent) is confirmed
      • All remaining elements of the outlook (negative special effects amounting to around €100 million, negative net interest result better than €250 million, corporation tax rate below 30%, capital expenditure ratio before financial investments at around 6% of sales, and free cash flow before acquisitions of at least €2 billion) are confirmed.
      Cookie Policy

      We use cookies to provide you with the best experience on our website. Click on "Accept all" to allow all cookies or "Change cookie settings" to decide individually.

      Note: If you consent to the use of performance cookies, you also consent to the transfer of your personal data to insecure third countries (e.g. to the USA). These insecure third countries do not provide a level of data protection comparable to EU standards. In the case of certain third party providers, such as Google and Mouseflow, no other guarantees are offered to compensate for this deficit. There is therefore a risk that the transmission of your personal data may result in state authorities accessing your personal data without you having effective legal protection options.

      For more information on performance technologies and the transfer of data to third countries, please refer to the privacy policy.

      By clicking the "Accept all" button, you explicitly consent to this. Consent can be revoked at any time by changing the cookie settings. The further processing of data already collected before revocation by the third-party provider cannot be excluded.

      A cookie is a small data file that is stored on your device. We use cookies to provide basic and convenience functionalities, measure website performance and analyze user behavior on the website. 

      Required cookies are always activated because they are indispensable for the operation of the website and to store your cookie consent. Functional and performance cookies are optional. All optional cookies are deactivated by default.

      You can change your cookie settings at any time by visiting our Cookie Policy or by clearing the cache in your browser. 

      Show more Show less
      Back
      Required cookies Required

      These cookies are required to provide you with key functions.

      Functional cookies

      These cookies are used to provide certain functionalities to you.

      Performance cookies

      These cookies are used to measure website performance and user behavior. All collected data are analyzed anonymously.