Germany automotive sector supplier Continental posted first-quarter figures weaker than expected by analysts, but stuck to its forecast for the group as a whole over the full year.
Sales in the automotive group sector came in at €4.8 billion ($5.1 billion), down from €5 billion last year and also below expectations of €4.9 billion.
The margin on earnings before interest and tax was minus 4.3%, by contrast with expectations for minus 1.8%. The company attributed the poor results to lower volume, particularly in Europe, as well as pending contract renegotiation for additional pricing with customers.
Last year, Continental posted a positive margin of 0.8% on sales.
Delayed product launches and increased pay for employees also hit profitability.
Over the company as a whole, sales were also below expectations at €9.8 billion. Last year, the figure was €10.3 billion.
Thanks to the contribution from tyres, a positive margin of 2.0% was recorded, well down from the 5.6% posted last year.
Despite the poor quarter, the company is sticking to its forecasts for the year in all units.