Continental’s Unit Sale Faces Uphill Struggle After Profit Miss
Automobile tires tested at the Continental AG Contidrom tire test facility in Wietze, Germany.
Photographer: Krisztian Bocsi/BloombergContinental AG’s industrial ContiTech unit is set to miss targets because of weak demand and other expenses, raising doubts about the price the division will fetch in its sale process.
Returns on adjusted earnings before interest and tax at ContiTech, which makes products such as conveyor belt systems and agricultural hoses, are expected at around 4.9% for last year, the German tire maker said Wednesday. The preliminary result falls short of a goal of at least 6%.