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Frankfort (Reuters) – The slowdown in the auto sector sparked profit warnings from Continental supplier and paint system producer Duerr on Monday night.
Jungheinrich <JUNG_p.DE> also lowered its outlook due to a slowdown in the forklift sector.
It was a fourth warning on Continental's profits in 16 months, as French rival Faurecia stood Tuesday.
"The main reason is the continued decline in global production of pbadenger cars and light-duty vehicles," Continental said, adding that auto production would likely drop by 5 percent instead of remaining stable.
Despite negative news, Continental shares rose 4.6% at 09:25 GMT.
"The market tells us that in the short term, the worst has been integrated," Evercore said. ISI badyst Arndt Ellinghorst.
"The magnitude of the reduction is worse than expected and bodes well for the rest of the results season and the outlook for 2020".
Continental is expected to release its results on August 7th.
Duerr, who produces woodworking equipment and paint systems for the automotive industry, said the decline in payment receipts from the auto sector had affected its cash flow in the first half.
The company, which is expected to release its first half results on August 7, announced that EBIT Margin forecasts of 7% to 8% for 2020 are being revised.
Jungheinrich said that customer investment had fallen sharply.
"This is due to the sluggish macroeconomic environment and related developments in the material handling equipment market," said Jungheinrich, which is expected to release its results on Aug. 8.
(Report by Danilo Masoni in Milan, Edward Taylor in Frankfurt, edited by Jason Neely)
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