By Rachel More and Christina Amann
BERLIN (Reuters) -German automotive supplier Continental AG reported a net loss in the third quarter due to 1.1 billion euros ($1.28 billion) in one-off costs as it sheds parts of the group to focus on its core tyres business.
Continental swung to a net loss of 756 million euros from a 486-million-euro profit a year earlier, the company said on Thursday.
Earnings were hit by non-cash one-off impacts from the spin-off of Continental’s Aumovio auto parts division, which was listed in Frankfurt in September, and the planned sale of its Original Equipment Solutions (OESL) business.
“In a challenging market environment, we continue to work diligently, both operationally and strategically, to complete our realignment next year,” CEO Nikolai Setzer said.
Shares in Continental were largely flat after the results.
OESL is part of the ContiTech rubber and plastics division, which Continental plans to sell next year.
This will leave just the tyres business remaining, which represents the company’s largest earnings pool and boasted a third-quarter profit margin of 14.3%.
Adjusted operating profit for the group fell by 15% year-on-year to 565 million euros in the July-to-September period, beating the 468.5 million euros forecast by analysts in a company-provided poll.
Upon releasing preliminary results last month, the company pointed to a robust quarter despite lower volumes and U.S. import tariffs.
Finance chief Roland Welzbacher said the tariffs were expected to have a low three-digit million-euro impact on earnings this year.
The goal is to complete the sale of ContiTech in the second half of 2026, Welzbacher told Reuters, adding that the company had seen “strong interest from various investors”.
($1 = 0.8575 euros)
(Reporting by Rachel More, Editing by Miranda Murray, Friederike Heine, Aidan Lewis)
