Continental AG Updates FY16 Outlook; Confirms Sales Forecast

(RTTNews) - Continental AG (CTTAY.PK) said fiscal year EBIT of its Automotive Group is expected to be significantly lower than the previous year's level due to potential expenditure for warranties and pending antitrust proceedings and the aftermath of three earthquakes in Japan as well as high R&D advances. In aggregate, these circumstances result in a negative effect on the Automotive Group's reported and adjusted EBIT of around 480 million euros. 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 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 euros, before exchange-rate effects. The sales forecast for the corporation is still confirmed at around 41 billion euros, before exchange-rate effects.