CTTAY Continental AG (PK)

   By Sarah Sloat 
 

Continental AG said late Monday that its business situation improved overall in the second quarter but profitability and sales were still well below year-ago levels amid the coronavirus pandemic.

Sales in the quarter were 6.62 billion euros ($7.58 billion), a decline of 40% on an organic basis, the German tire maker and auto supplier said. The adjusted margin on earnings before interest and taxes was minus 9.6%, the company said. For the second quarter of 2019, the company reported a margin of 6.7%.

"Though the business situation at Continental AG showed substantial improvement through the course of the second quarter, the environment continues to be characterized by substantial uncertainty due to the ongoing Covid-19 pandemic," the company said.

Free cash flow was negative EUR1.78 billion in the period before acquisitions and carve-out effects, compared with negative EUR29 million in the second quarter of 2019.

Because the pandemic makes it difficult to judge possible adverse consequences on production, the supply chain and demand, Continental still refrained from providing an outlook for the year.

Write to Sarah Sloat at sarah.sloat@wsj.com

(END) Dow Jones Newswires

July 21, 2020 01:46 ET (05:46 GMT)

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