|Bid||84.52 x 18200|
|Ask||84.54 x 4300|
|Day's Range||84.16 - 86.02|
|52 Week Range||51.45 - 133.10|
|Beta (5Y Monthly)||1.66|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 05, 2020|
|Forward Dividend & Yield||3.00 (3.44%)|
|Ex-Dividend Date||Jul 15, 2020|
|1y Target Est||251.52|
Moody's Investors Service, ("Moody's") has today confirmed IHO Verwaltungs GmbH's (IHO-V) corporate family rating (CFR) and senior secured instrument ratings at Ba2 and the probability of default rating (PDR) at Ba2-PD. The outlook on the ratings changed to negative from ratings under review.
(Bloomberg) -- Germany pressed ahead with the implementation of a 130 billion-euro ($145 billion) stimulus package, as Europe’s largest economy seeks a way out of the worst recession since World War II.At a special meeting on Friday, Chancellor Angela Merkel’s cabinet signed off on numerous key initiatives agreed on by her ruling coalition last week. The goal is to get the bulk of the plan approved by parliament before its summer break, which typically begins a two-month recess in early July.With exports tumbling and unemployment surging from the fallout of lockdowns to contain the coronavirus pandemic, the government is under pressure to act. Economy Minister Peter Altmaier said Friday that figures for May could be as bad as April, when industrial production took a record hit. A recovery is only expected starting in July, he added.“Despite the gradual easing, the slump in sales in many industries is far longer than expected weeks ago,” Eric Schweitzer, president of the DIHK business lobby, said in a statement. “The water is already up to the neck” of companies in hard-hit sectors such as travel and trade fairs.A value-added tax cut designed to reinvigorate demand after weeks of curbs on public life is set to go into effect on July 1. Other measures the cabinet approved include emergency aid for small and mid-sized companies, a family bonus of 300 euros per child and changes to tax rules to encourage people to buy less-polluting vehicles.“Our measures have punch,” Finance Minister Olaf Scholz said in a press conference following the cabinet meeting. “We want to come out of this crisis with full strength.”To pay for the massive stimulus package, the government intends to increase borrowing this year by at least 30 billion euros, people familiar with the plan have said.A supplement to the 2020 budget to pave the way for the borrowing will be decided next week, Scholz said, declining to comment on the size. The move also requires parliamentary approval.After years of budget surpluses and restrained spending, Germany has reduced debt from over 80% of gross domestic product in the wake of the 2008 financial crisis to around 60%, giving it room for extra borrowing, according to Scholz.Germans broadly back the latest stimulus package, according to a survey published Friday. Among 1,270 voters polled for broadcaster ZDF, 68% said they think the measures are positive and half think the right amount is being spent. However, 85% said they don’t believe that the sales-tax reduction will do much to lift the economy.Even if the stimulus package were implemented in full, the economy is projected to shrink by 8.1% this year, according to the Berlin-based DIW institute. That’s worse than the Bundesbank’s prediction of -7.1% and the OECD’s -6.6%. Altmaier said there was no reason to update official government forecasts for now.While Germany has kept the coronavirus in check in recent weeks, a second wave of infections is unavoidable, according to Lars Feld, the country’s top economic adviser.“The goal is to avoid a lockdown during a second wave,” Feld said in a Bloomberg TV interview. “Then we perhaps don’t even need a second or a third package of fiscal stimulus.”Recent figures suggest that there’s a pick up in the economy from the low in April, “so it very much looks like we can realize a V-shaped scenario and then avoiding a second leg lockdown will be sufficient,” he added.That might be too late for some companies. Auto suppliers have been particularly hard hit by the collapse in demand and have fewer resources than carmakers to weather a prolonged downturn.”Our industry has suffered a cardiac arrest in Europe,” Elmar Degenhart, chief executive officer of German auto-parts giant Continental AG, told news agency DPA in an interview. “Such a cardiac arrest cannot be remedied with a high dose of vitamin C - what is needed is a defibrillator.”(Recasts, adds business lobby comments in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Stock markets seem keen to return to the black after Tuesday's stumble. Europe has opened 0.7% higher and U.S. futures are up around half a percent. Elsewhere, Chinese producer prices offered more proof of the global trade and consumer demand malaise.
(Bloomberg Opinion) -- In 2008, Schaeffler AG, a family-owned German auto parts supplier, made an offer to buy the shares of its listed rival Continental AG. It almost collapsed under the debt it amassed to fund the deal, which was unveiled shortly before the Lehman Brothers bankruptcy. A decade later, another privately held German car parts company, ZF Friedrichshafen AG, has made a similarly ill-timed, debt-funded takeover: the $7 billion acquisition of truck-braking specialist Wabco Holdings Inc. ZF is now cutting thousands of jobs to keep its creditors at bay.It’s possible you haven’t heard of ZF, because it doesn’t sell directly to consumers and isn’t listed on the stock market. But you will have heard of Ferdinand von Zeppelin, the man who set up ZF a century ago to start building gears for his airships. This mode of travel captured the world’s imagination until the 1937 Hindenburg fire ended the era of luxurious passenger-carrying dirigibles.Today ZF is one of the largest auto parts suppliers, with almost 40 billion euros ($45 billion) of yearly sales. Its 160,000 employees make everything from vehicle transmissions to braking and automated-driving technology.Instead of airships, ZF has used aggressive dealmaking to cross the Atlantic. It swallowed U.S. rival TRW Automotive for $12.9 billion in 2014, and after years eyeing Wabco it finally made a move last year. (Wabco is based in Bern, Switzerland, but was listed in the U.S.) These deals have helped reduce the company’s dependence on combustion-engine technologies, which now comprise less than 30% of ZF’s revenues. But future-proofing has forced the once cautious German group to embrace some pretty racy, Anglo-Saxon ways. The Wabco deal was priced at an eye-watering 20 times the target’s average earnings over the past three years. ZF has amassed 9.6 billion euros of debt and it has another 5 billion euros of pension liabilities, according to Bloomberg data. Wabco’s boss, Jacques Esculier, is in line to receive a $24 million golden parachute payment for selling to ZF, but that’s nothing compared with the $88 million that TRW boss John Plant received after ZF’s takeover.Some companies have tried to amend or back out of deals agreed before the coronavirus pandemic but the Wabco deal closed as planned last month. ZF’s management wrote immediately to employees, revealing up to 15,000 job cuts (about 10% of its workforce). If debt covenants aren’t met, “external creditors could demand influence over our business decisions,” the email warned. Lacking a stock market listing, ZF can’t easily raise capital from equity investors.When car sales were still growing steadily, automotive companies and their suppliers could afford to carry some excess weight. ZF’s operating profit margins were about 4% on average over the past five years, providing only a thin cushion. Now it’s having to confront three shocks all at once: coronavirus production shutdowns, a global recession and the structural shift to electric vehicles. About 80% of ZF’s 50,000 German employees have had their working hours cut because of the pandemic. The company warned it will make large losses and credit-rating agencies have downgraded its debt to junk. ZF has joined the ranks of so-called “fallen angels,” which have lost their investment-grade status. Its bonds lost more than a quarter of their value at one point, but have rebounded following aggressive market interventions by central banks. So is this just another tale of a debt-enamored company getting a coronavirus comeuppance? Maybe not. In at least a couple of respects ZF is pretty unique.About 94% of the company’s shares are controlled by the Zeppelin Foundation, a legacy of the airship inventor that’s overseen today by the German city of Friedrichshafen — population 60,000. The cost cuts are a blow to the town, situated on the shores of the idyllic Lake Constance. Dividends from ZF helped pay for its hospital, university and preschools. The town’s mayor, Andreas Brand, sits on the company’s supervisory board and is pretty influential. Stefan Sommer, the architect of ZF’s debt-funded expansion, stood down as chief executive officer in 2017 after clashing with the more cautious Brand.ZF’s borrowings are pretty esoteric too. It has regular bonds but it’s also a prolific user of Schuldschein finance, a form of debt — not quite a loan and not quite a bond — that’s popular with Germany’s “Mittelstand” of small and medium-sized companies. Lately this financing model has spread beyond German-speaking countries, with borrowers attracted by the limited disclosure requirements. Schuldschein debt can cause complications, though, if a company gets into difficulty. The permission of each borrower (rather than a simple majority) is required to restructure the debt.No wonder ZF is so keen to keep its creditors at arm’s length. Last month it amended a key lending agreement, which will allow its net borrowings to widen to as much as 5.5 times Ebitda (a measure of cash earnings) in the next 12 months. The company is not in any immediate danger because it has about 10 billion euros of cash, cash equivalents and credit facilities, and there are no major borrowings that need refinancing soon. Still, its leverage is heading higher than its owners and lenders would like.JPMorgan Chase & Co. advised ZF on its Wabco takeover and helped furnish it with a larger overdraft facility. A decade ago JPMorgan advised Continental on how to defend itself against Schaeffler’s approach. It knows all about the pitfalls of doing a big deal at the top of the market. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
HSBC analyst Henning Cosman maintained a Hold rating on Continental Aktiengesellschaft on Thursday, setting a price target of EUR80, which is approximately 3.32% above the present share price of $77.43.
Nvidia Corp, whose semiconductors power data centers, autonomous cars and robots, said on Thursday it plans to enter the market for technology that helps cars with automated lane-keeping, cruise control and other driver-assistance features. The move, announced as part of the chip company's annual conference, which was held online this year, represents a change in direction for Nvidia. Until now, the Santa Clara, California-based company has supplied key technology aimed at making autonomous vehicles that require much more sophisticated computers.
Major U.S. auto suppliers told Michigan Governor Gretchen Whitmer they are ready to restart production and raised alarm about new delays to resuming operations. Due to the coronavirus pandemic, most auto suppliers halted operations in late March as automakers closed their factories. Now uncertainty about when Michigan will allow the resumption of operations is causing delays throughout the U.S. auto industry.
EU antitrust regulators are asking Daimler, Continental and other car parts suppliers for details of failed mediation talks with Nokia, raising hopes that enforcers may step in to resolve a patent licensing fee dispute. Daimler and Continental, along with Bury Technologies, Valeo and Thales-owned Gemalto, complained to the European Commission last year about the fees Nokia was demanding for patents related to car communications.
Rating Action: Moody's places ratings of 14 European Automotive parts suppliers under review for downgrade; downgrades six issuers. Global Credit Research- 26 Mar 2020. Frankfurt am Main, March 26, 2020-- ...
Moody's Investors Service, ("Moody's") has today downgraded the issuer rating of Continental AG (Continental, or the company) to Baa2 from Baa1. Concurrently, Moody's downgraded the senior unsecured ratings of Continental and their subsidiaries Conti-Gummi Finance BV and Continental Rubber of America, Corp. (CRoA).
European shares rose for a fourth straight session on Thursday, as the action taken this week by several major central banks to ease the impact of the coronavirus outbreak on growth fed through into financial markets. The outbreak shows little signs of peaking globally, with Italy closing all schools and California declaring a state of emergency, but investors are hopeful stimulus from governments and central banks will protect the global economy. Analysts firmly expect the European Central Bank to cut interest rates by 10 basis points next week, joining the U.S. Federal Reserve and its peers in Canada and Australia in reducing borrowing costs.
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Two months later, they learned that the tire factory where both work would be shut down early next year. A malaise in Germany's mighty automobile industry, caused by weaker demand from abroad, stricter emission rules and electrification, is starting to leave a wider mark on Europe's largest economy by pushing up unemployment, eroding job security and hitting pay. The German auto sector is expected to cut nearly a tenth of its 830,000 jobs in the next decade, according to the VDA industry association.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Continental AG and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
The big shareholder groups in Continental Aktiengesellschaft (ETR:CON) have power over the company. Large companies...
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of IHO Verwaltungs GmbH and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Is Continental Aktiengesellschaft (ETR:CON) a good dividend stock? How can we tell? Dividend paying companies with...
Today we'll look at Continental Aktiengesellschaft (ETR:CON) and reflect on its potential as an investment...
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Germany is at a crossroads, and nowhere will that be more evident than at the Frankfurt auto show this week.Despite sleek new electric models like the Porsche Taycan, the traditional showcase of German automotive excellence risks becoming a platform for protest rather than preening, drawing attention to a generation of young consumers more likely to demonstrate against the car’s role in global warming than shop for a new VW, BMW or Mercedes-Benz.Autos have made Germany into a global manufacturing powerhouse, but pollution concerns -- intensified by Volkswagen AG’s 2015 diesel-cheating scandal -- have sullied the reputation of a product that once embodied individual freedom. More recently, trade woes and slowing economies have hit demand. The consequence is Germany’s car production slumping to the lowest level since at least 2010.“Investors have been fearful about the industry’s prospects for a number of years, and the list of things to worry about doesn’t seem to be getting shorter,” said Max Warburton, a London-based analyst with Sanford C. Bernstein. “There is a general sense that things are about to get worse.”The end of the combustion-engine era and car buyers more interested in data connectivity than horsepower threaten Germany’s spot at the top of the automotive pecking order. Signs of trouble abound. In addition to numerous profit warnings this year, Mercedes maker Daimler AG delayed a plan to expand capacity at a Hungarian factory, parts giant Continental AG has started talks to cut jobs, and automotive supplier Eisenmann filed for insolvency.The car’s fragile standing was evident in the reaction to a deadly accident in Berlin on Friday evening when a Porsche SUV crashed into a group of pedestrians. Stephan von Dassel, the mayor of the district where the incident took place, said on Twitter that “such tank-like vehicles” should be banned in the city.Germany is teetering on the brink of recession, and the auto industry is pivotal to the economy’s health. Carmakers such as Volkswagen, Daimler and BMW AG as well as parts suppliers like Robert Bosch GmbH and Continental employ about 830,000 people in the country and support everything from machine makers to advertising agencies and cleaning services. With factories from Portugal to Poland, the importance of the sector radiates across Europe as well.With emissions regulations set to tighten starting next year, concerns are mounting that companies across the country’s industrial landscape are ill-equipped to deal with the technology transition resulting from climate change and increasing levels of digitalization. IG Metall organized a demonstration in June, with more than 50,000 people rallying in Berlin, to draw attention to the risk of widespread layoffs from what Germany’s biggest industrial union calls “the transformation.”“Far too many companies stick their heads in the sand and rest on their laurels,” IG Metall Chairman Joerg Hofmann said. “If companies continue to act so defensively, they’re playing roulette with the futures of their workers.”The concern is that the future of Germany’s car towns could look something like Ruesselsheim. The home of the Opel brand, which once rivaled VW as the German leader, has faded along with the carmaker’s performance. After years of losses, it was sold in 2017 by General Motors Co. to France’s PSA Group, which is slashing the Opel’s 20,000-strong German workforce by nearly a fifth.“Everybody in Ruesselsheim is worried,” said Servet Ibrahimoglu, owner of a kebab restaurant down the street from Opel’s factory, adding that his business has dropped by a third. “Before at lunchtime, this place was full. Now there’s no one.”The auto industry’s efforts to adapt to the risks will be on display in Frankfurt, and the stakes couldn’t be higher for models like the VW ID.3. The battery-powered hatchback is the auto giant’s first effort in an aggressive push into electric cars, which will make its debut at the Germany’s premier auto exhibition.Under bright lights and blaring music, the show is a throwback to the auto industry’s glory days, but it’s fading as public interest in old-school car show wanes. Toyota, Volvo and Ferrari are among the 30 brands skipping the show. For those still there, the displays will predominantly feature traditional gas guzzlers and other cash cows. Land Rover will unveil a resurrected version of the Defender, the British brand’s iconic offroader.“Instead of presenting new mobility concepts for the future, we’ll see lots of SUVs on stands that have become few and far between,” said Ferdinand Dudenhoeffer, director of the University of Duisburg-Essen’s Center for Automotive Research. “The recession in the global auto business is forcing savings cuts for car manufacturers and suppliers, along with a rapid loss of attractiveness of the classic ‘analog’ car shows.”Make or BreakWhere German brands once tried to outdo one another with outlandish displays like indoor tracks and multistory exhibition spaces, the main drama may take place outside Frankfurt’s sprawling fairgrounds. Greenpeace and Germany’s BUND have called for a mass march on the site on Saturday, joined by groups of cyclists setting off from around Frankfurt to underscore their call for the end of the combustion engine. Organizers are expecting at least 10,000 people. “We’re in the middle of a climate crisis,” said Marion Thiemann, transport-policy expert at Greenpeace. “The biggest problem is the automobile industry.”Despite doubts from environmentalists, automakers have gotten the message that they’re facing a make-or-break moment. The industry is spending billions of euros to develop cleaner vehicles and counter the emergence of ride-sharing services like Uber Technologies Inc., which has a market value equivalent to Daimler, the inventor of the automobile.“I’m absolutely convinced that carmakers will adapt to the situation,” BMW’s labor head Manfred Schoch said during a testy panel discussion with activists in Berlin last week. “Those that don’t will go out of business.”(Adds comment from activist in third-to-last paragraph)\--With assistance from Kristie Pladson, Andrew Blackman and William Wilkes.To contact the reporters on this story: Christoph Rauwald in Frankfurt at email@example.com;Carolynn Look in Frankfurt at firstname.lastname@example.org;Elisabeth Behrmann in Munich at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, Christoph Rauwald, Chris ReiterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Today we're going to take a look at the well-established Continental Aktiengesellschaft (FRA:CON). The company's stock...
Moody's Investors Service ("Moody's") has today changed the outlook on the ratings of German automotive supplier Continental AG (Continental, or the group), to negative from stable. Concurrently, Moody's has affirmed Continental's Baa1 long term issuer and senior unsecured ratings, the (P)Baa1 debt issuance program ratings of Continental, Continental Rubber of America, Corp. and Conti-Gummi Finance BV and the Prime-2 (P-2) short-term ratings of Continental Rubber of America, Corp.