FRANKFURT: German auto parts supplier Continental will post a third-quarter loss after impairments and restructuring expenses when it reports results on Nov. 11, it said on Wednesday.
The Hanover-based group, which has already warned of lower profit and revenue in 2020 as it goes through an overhaul, said both net income attributable to shareholders and earnings before interest and tax (EBIT) would be negative in the quarter.
The auto industry, a crucial sector of Germany’s export-driven economy, has been hammered by the coronavirus pandemic at a time when it was already struggling with the shift away from diesel- and gasoline-powered cars to electric vehicles.
In its announcement Continental said it would take a goodwill impairment of 649 million euros ($770.6 million) in its vehicle networking and information division in the quarter as it does not see vehicle output picking up over the next five years.
It also said restructuring expenses in the period would reach 687 million euros and that it expected further costs from the process in the fourth quarter, though the exact amount had not yet been clarified.