July 22, 2019 / 7:00 PM / a month ago

Continental cuts 2019 outlook citing expected fall in vehicle production

FILE PHOTO: Flags of German tyre company Continental are pictured before the annual news conference in Hanover, Germany,March 7, 2019. REUTERS/Fabian Bimmer

FRANKFURT (Reuters) - German auto supplier Continental (CONG.DE) on Monday cut its 2019 outlook, citing expectations for a fall in global vehicle production and unexpected changes in consumer demand for some products.

The company also said that it may have to make provisions for warranty claims in the second half of the year, the amounts for which were not yet clear.

Sales for the year are now expected to be around 44 billion to 45 billion euros ($50.44 billion), down from a previous estimate of 45 billion to 47 billion euros, it said.

Continental said it based its previous assumptions on flat global vehicle production in 2019 but now sees a decline of around 5%.

Second quarter results would meet analyst forecasts, the company said. According to preliminary figures, consolidated sales in the quarter were around 11.2 billion euros, it said.

It plans to release full earnings on Aug. 7.

Reporting by Tom Sims, editing by Deepa Babington

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