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The drive division contains technology for internal combustion engines as well as parts for electric drives. The lucrative tire division, however, remains completely in the Group – for now, because the boss of Conti Elmar Degenhart keeps an open backdoor. If there was to be a chance in the future for a major purchase that the company would not want to miss, then the tire division could at least partially be put on the stock market, he said at the time. a conference call.
Above, the enthusiasm flattens out but then. A trader did not see big surprises beyond what was expected in the market anyway. The price of the stock was recently 1.3% higher. The group had already looked once to outsource the company with the powertrains, but then decided against it.
According to Conti information the group's largest restructuring of its own history offers, according to industry expert Stefan Bratzel "huge opportunities." From the point of view of the investor, more independent of the group, the individual divisions enjoyed greater independence and were therefore easier to market, said the head of the center of automotive research
In the middle of the paradigm shift of the industry Digitization could put Conti in the holding structure of the prospective sectors in the center and strengthen – other areas could be sold on the model of a so-called ' bad bank, "said the expert. Bratzel particularly emphasized the orientation of the software as crucial. "The group is doing well, but at the same time, you have to do it for the future," he said.
Continental will be managed as a holding company in the future. There are three commercial pillars: tires, the supplier sector and the powertrain. Divisions would be gradually built or adjusted. The change requires the approval of the Supervisory Board, which will meet on July 26, 2018. Degenhart said that the supervisors had accompanied the previous process in a constructive manner and the Board of Directors with the consent – even of the Main shareholder, the Schaeffler industrial family.
Jobs should not be removed by conversion, Ariane Reinhart. In the coming years, thousands of new workers would be needed in the company. The Drive division has excellent growth opportunities, said Degenhart. You also get an attractive starting position with the electric controls. The division is not a "bad bank".
The automotive industry is currently in transition. Many suppliers and automakers are repositioning to remain flexible, among others, Daimler is reviewing the changes. It is still unclear whether customers will buy as many electric cars in the future as companies think – but the industry is under pressure to further reduce exhaust emissions. "Over the next decade and beyond, the automotive industry is experiencing the most significant and profound change in its history of more than 130 years around the world," said Mr. Degenhart. "We are approaching this change at an early stage and with foresight."
"Conti is pulling the plug of the combustion engine," said automotive expert Ferdinand Dudenhöffer of Automotive Research Center. The strategy is brilliant because now you still get money in the stock market. "In 2025, then come the costs of rehabilitation of this activity," he said. For other providers, the conversion is also a wake up call to prepare for the future.
The spin-off of the drive activity will initially cost the Group money and will entail operating costs of around 350 million euros. . The overwhelming majority of operating costs will occur in 2018 and 2019. In addition, there would be tax disadvantages, rising to about 100 million euros and mainly incurred in 2019, said Continental. The group's outlook for 2018 remains intact.
According to Degenhart, money from under-registration could, among other things, allow the development of battery cell production – but with semiconductor technology considered the next generation. A decision on this issue is expected only after 2020.
Should there be an interesting opportunity in the future, thanks to a major acquisition to reinforce their own software development, a partial exchange course? tire industry is still considered, Degenhart. The director also cited the field of mobility services as an area that deserves to be invested. / Men / tst / nas / she
(AWP)
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