Free Trial

Continental (Baa2/BBB): Prelim Q1 Results

CONSUMER CYCLICALS

Slight negative for spreads


• Revenue missed consensus by 3%, with EBIT margin much lower at 2% vs 4.2% expected.

• Management blamed the margin miss on a mix of lower European volumes, contract renegotiations, unfavourable product mix and FX.

• FY24 guidance confirmed, but most analysts are commenting that this is now at risk and looks hard to achieve.

• FCF miss (-€1.1bn vs €890mn expected) was due to €500mn payment for ContiTech AG shares, implying better than expected operating cash flow.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.