Continental Gains After Car-Parts Returns Turn Positive
- Manufacturer still lowers several of its annual forecasts
- German company weighs auto-parts spinoff in major revamp
This article is for subscribers only.
Continental AG shares rose after improving returns at its struggling car-parts unit, which the German company may spin off in its biggest-ever restructuring.
The division’s adjusted earnings before interest and tax margin climbed to 2.4% in the second quarter, from -0.5% in the same period last year, after Continental cut costs and renegotiated prices with customers. The company still lowered several of its annual forecasts on a weak European automotive market.