Continental Swings to Loss for 2019, Cuts Dividend

   By Jessica Sier

Continental AG swung to a loss for 2019 and cut its dividend, the company said on Thursday.

The car-parts manufacturer reported a 1.23 billion euro ($1.37 billion) net loss for 2019, compared with a net profit EUR2.90 billion a year earlier.

The result was worse than analyst forecasts, which expected a net loss of EUR623.10 million for 2019, according to consensus estimates on FactSet.

Continental made a loss before interest and taxes of EUR268.3 million, dropping sharply from its 2018 EUR4.03 billion earnings before interest and taxes.

The Hanover-based company cut its proposed dividend to EUR4 per share, down from a EUR4.75 in 2018.

Sales rose to EUR44.48 billion in 2019, 0.2% higher than its 2018 recording.

Looking ahead, the company guided for a sharply deteriorating market, saying it anticipates sales for 2020 of around EUR42.50 billion to EUR44.50 billion, and an adjusted EBIT margin of around 5.5% to 6.5%.

"We are currently looking into how we can effectively respond to a weakening overall situation and its impact in the medium term, with further measures that go beyond our current structural program," said Elmar Degenhart, chairman of the executive board.

Write to Jessica Sier at jessica.sier@wsj.com

(END) Dow Jones Newswires

March 05, 2020 02:51 ET (07:51 GMT)

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