Continental AG will push the spin-off of its powertrain division again till subsequent yr. The corporate mentioned on Friday when it reported a 17% drop in first-quarter working revenue, hit by a downturn in automotive demand and better investments.
The Hanover-primarily based automotive provider mentioned it would replace capital markets towards the top of this yr concerning the partial float of the lately shaped division, which it has named Vitesco Applied sciences.
“Relying on market situations, this may be anticipated from 2020,” the corporate stated.
The delay marks the second time a high-profile itemizing has been delayed in Germany this 12 months, after Volkswagen in March postponed itemizing its truck division till market situations enhance.
Metal maker ThyssenKrupp can be reviewing plans to separate its enterprise in two as market situations deteriorate.
Continental’s earnings earlier than curiosity and taxes (EBIT) fell to 884 million euros ($984 million) within the first quarter, in contrast with 1.066 billion euros a year earlier, while gross sales remained flat.
Releasing preliminary outcomes earlier than its annual shareholders’ assembly, Continental stated its adjusted EBIT margin fell within the quarter to eight.1% from 9.7% a year in the past.
Continental Chief Government Elmar Degenhart mentioned, “International automobile manufacturing was down considerably initially of the year, as anticipated.”
The auto provider mentioned it anticipated a market upturn within the second half of the year and confirmed the outlook it gave in January: an adjusted EBIT margin of 8 to 9% this year, as an alternative of final year’s more significant than 9%.
Shares in Continental had been up 2.1% at 0752 GMT, outperforming Germany’s blue-chip DAX index, which little modified.