Germany's Continental Posts Euro1 Billion Q3 Loss

MATT MOORE

FRANKFURT (AP) — German car parts and tire maker Continental AG on Thursday reported a euro1 billion ($1.5 billion) loss for the third quarter as lower auto sales pinched demand and it booked one-time accounting charges.

The loss in the July-September period compared with a profit of euro2.4 million a year earlier.

The results were hampered by a hefty charge of euro875.8 million as it lowered the value of assets at its automotive division, a move Continental said "cleans up financial risks."

Of the charge, euro61.4 million was applied to its interior division, euro367 million at its chassis and safety unit and euro447.4 million in its powertrain division.

Continental, based in Hannover, said revenue dipped 9.4 percent to euro5.3 billion in the quarter compared with nearly euro5.9 billion in 2008.

Despite the earnings declines, investors sent Continental shares nearly 6 percent higher to euro36.51 in Frankfurt trading.

Privately held Schaeffler Group KG last year took over the much larger Continental just as the world economic downturn began to ravage auto markets. Continental, for its part, took over Siemens AG's car parts business in 2007.