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CORRECTED-Continental AG slashes margin aim as chip crunch, supply chain bite

(Corrects Q3 results publication date to Nov. 10 in last paragraph)

BERLIN, Oct 22 (Reuters) - German automotive supplier Continental lowered its forecast for its 2021 operating profit margin to between 5.2% and 5.6% on Friday, from a previous estimate of 6.5% to 7%.

Citing chip shortages and supply chain problems, the company said it expected global light vehicle production in the 2021 fiscal year to be within 1% above or below the 2020 level, which is significantly more pessimistic than its previous outlook in August which assumed production would grow by 8-10%.

Continental’s preliminary data showed its third-quarter consolidated sales were 8.04 billion euros ($9.35 billion), the company said, down from 8.6 billion in the third quarter last year.

Its adjusted earnings before interest and taxes in the third quarter were 5.2%, a significant drop from last year’s 8.4%.

Continental is due to publish full third-quarter results on Nov. 10. ($1 = 0.8600 euros) (Reporting by Victoria Waldersee; Editing by Maria Sheahan)

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