By Rachel More
BERLIN (Reuters) -German automotive supplier Continental AG reported a net loss in the third quarter on Thursday due to one-off costs of 1.1 billion euros ($1.28 billion) linked to restructuring as it sheds parts of the group to become a pure-play tyres company.
Continental swung to a net loss of 756 million euros from a 486-million-euro profit a year earlier due to the non-cash special effects resulting from the spin-off of its Aumovio division and the planned sale of its OESL business.
Those effects “overshadowed the otherwise solid operational performance in both EBIT and net income at group level”, the company said, confirming preliminary results for the quarter.
Adjusted operating profit fell by 15% year on year to 565 million euros in the July-to-September period, beating the 468.5 million euro forecast by analysts in a company-provided poll.
Group sales of 5 billion euros and an adjusted operating margin of 11.4% were also higher than expected, with a strong price mix offsetting lower volumes and tariffs.
“In a challenging market environment, we continue to work diligently, both operationally and strategically, to complete our realignment next year,” CEO Nikolai Setzer said.
($1 = 0.8575 euros)
(Reporting by Rachel More, Editing by Miranda Murray and Friederike Heine)
