May 7, 2020 / 6:32 AM / a month ago

Car supplier Continental Q1 profits down 47% amid corona shutdown

FRANKFURT, May 7 (Reuters) - German auto parts supplier Continental said it was reviewing deeper cost cuts as its operating profit plunged by 47% in the first quarter, hit by coronavirus lockdowns which caused a 25% drop in global car production.

Earnings before interest and taxes dropped to 436.5 million euros ($471.38 million), Continental said, compared with 823.3 million euros in the year-earlier quarter. The company’s operating margin narrowed to 4.4% from 7.5%.

Last month, Continental postponed the planned spin-off of its powertrain unit Vitesco Technologies, citing ongoing economic uncertainty for the delay.

Vitesco warned in January that it faced margin pressure as it shifts its business beyond combustion engines, which make up 90% of revenues, to capture growth from electromobility.

$1 = 0.9260 euros Reporting by Edward Taylor; editing by Thomas Seythal

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