By Louis van Boxel-Woolf and Chiara Holzhaeuser
(Reuters) – German automotive and industrial provider Continental lower its annual gross sales steerage for the second time this 12 months on Monday (NASDAQ:), citing weak industrial demand in Europe and North America, but it surely beat revenue expectations to ship its shares greater.
Shares have been up 6.16% at 0823 GMT, outpeforming the broader index, after third-quarter core revenue, at 873 million euros ($932.80 million), beat the consensus by about 11%.
The group’s margin of 8.9% for the quarter additionally surpassed expectations of seven.9%.
It stated earnings rose in response to cost self-discipline and cost-cutting in its automotive division, which it desires to spin off by the top of 2025.
Continental expects gross sales for 2024 to be between 39.5 billion and 42 billion euros, beneath its 40-to-42.5 billion euros steerage in August, and in keeping with gross sales expectations for the 12 months in a company-compiled consensus.
It confirmed gross sales and earnings steerage for the automotive division, which final 12 months accounted for nearly half of gross sales.
Continental had already lower its gross sales steerage in August, citing weaker demand for passenger automobiles in Europe and for tyre replacements in North America.
The newest lower was a results of downward revisions within the ContiTech enterprise, which provides business in addition to carmakers.
European carmakers face hurdles together with excessive prices and fierce Chinese language competitors, in flip hitting their suppliers.
Carmakers BMW (ETR:), Mercdes-Benz, and Stellantis (NYSE:) have all issued revenue warnings this 12 months, and Volkswagen (ETR:) plans wage cuts and plant closures.
Automotive provider Schaeffler introduced job cuts final week, days after the chairman of Robert Bosch (NS:), the world’s largest, stated additional layoffs could be wanted at his agency.
Continental additionally introduced job cuts within the automotive division in February.
($1 = 0.9333 euros)