DETROIT, Mich.–A slowing auto sector prompted profit warnings from supplier Continental (CONG.DE) and paint systems producer Duerr (DUEG.DE) late on Monday.
Jungheinrich (JUNG_p.DE) also lowered its outlook citing a downturn in the forklift truck sector.
It marked a fourth profit warning from Continental in 16 months, while French rival Faurecia (EPED.PA) on Tuesday stuck to its guidance.
“The main reason is the continued decline in the global production of passenger cars and light vehicles,” Continental said, adding that car production will likely drop by 5% rather than remain flat.
Despite the negative news Continental shares were up 4.6% at 0925 GMT.
“The market is telling us that in the short run, the worst has been priced in,” said Evercore ISI analyst Arndt Ellinghorst.
“The magnitude of the cut is worse than we were expecting and bodes poorly for the remainder of earnings season and 2020 outlooks.”
Continental is due to release earnings on August 7.
