By (Reuters) -German automotive and industrial supplier Continental on Monday (NASDAQ:MNDY) cut its sales guidance for the second time this year, blaming weak demand from industry in Europe and North America, even as it posted third-quarter core profit above expectations.
Continental now expects sales for 2024 to be between 39.5 and 42 billion euros ($42.9 and $45 billion), down from the 40 to 42.5 billion euro range it gave in August, with the cut entirely a result of downward revisions in the ContiTech business, which supplies industry as well as carmakers.
August’s guidance was itself a cut, with Continental at the time citing weaker demand for passenger cars in Europe and for tyre replacement in North America.
Third-quarter core profit, however, came in at 873 million euros, beating expectations in a company-compiled consensus by about 11%, with the firm pointing to price discipline and cost-cutting in its automotive division, which it wants to spin off by the end of 2025.
Continental earlier this year announced job cuts in the division.
Its shares were seen up 3.5% in Lang & Schwarz pre-market indications at 0535 GMT.
($1 = 0.9333 euros)
