Analysts: Conti 3Q inline, but will wintry weather help?
While financial analysts were not more than satisfied with what they characterised as an “in-line” set of third quarter financial results from Continental AG, a spell of cold weather could be just the tonic for the German tyre maker which is strong in winter tyre sales.
“In line numbers and strong free cash flow in the third quarter may not be enough drive outperformance today for Conti…,” Morgan Stanley analysts wrote in an investor’s note dated 31 October. However, there was a note of optimism too: “We believe winter tyre sales can boost fourth quarter profits beyond company guidance…”
While other divisions do so well during the third quarter, according to the analysts, tyres “surprised positively” with net debt at 6.8 billion euros, some 100 million euros better than expected by the consensus of analysts expectations.
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