Continental AG (CON.XE) said on Thursday that its second-quarter net profit fell 18% due to higher costs and a lowered income from its rubber business as the German company raised its sales guidance for the year.
The automotive manufacturing company reported a net profit of 745.4 million euros ($882.5 million) in the quarter which ended on June 30, compared with EUR904.9 million in the same period a year earlier. Sales increased by 8% to EUR11.03 billion.
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Continental raised its sales outlook for the year to more than EUR44 billion, up EUR500 million from the previous guidance, citing the strength of its automotive business. The company also said that its rubber units could be affected by the expected slowdown of natural and synthetic rubber price increases over the second half of the year.
The tire maker maintained its earnings forecast. Elmar Degenhart, chairman of Continental's executive board, said that the market environment continued to be challenging due to "economic and political uncertainties."
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(END) Dow Jones Newswires
August 03, 2017 05:53 ET (09:53 GMT)