Continental Sees Muted Returns on Chip Shortage, Pandemic
- Operating margin forecast misses expectations at 5% to 6%
- CFO says start of year ‘subdued’ because of semiconductors
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Continental AG said profitability will be held back by an industrywide shortage of semiconductors that could drag on through the rest of the year and ongoing fallout from the pandemic.
Europe’s second-biggest car-parts maker expects a margin of 5% to 6% on adjusted earnings before interest and tax this year, according to a statement Tuesday. That compares with analysts’ average estimate of 6.3%.