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Continental Sees Chips, Inflation Dragging on Auto Industry

  • Supply shortage and raw material prices to weigh on sector
  • Supplier tops estimates for second quarter, edges up forecasts
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Continental CFO Sees Chip Shortage Continuing Into 2022
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Continental AG, Europe’s second-biggest supplier of car parts, warned the global bottleneck in chip supply and raw material cost inflation will drag on the auto industry through the rest of the year.

The maker of tires, brake systems and electronic components reported better-than-expected adjusted earnings before interest and taxes for the second quarter and raised the low end of forecasts for annual revenue and margins. But it also trimmed its yearly projection for industrywide production growth to 8% to 10%, from 9% to 12%.