German car parts and tire maker Continental AG on Thursday reported a ⁈ion ($1.5 billion) loss for the third quarter as lower auto sales pinched demand for its products and it booked one-time accounting charges.
The loss in the July-September period compared with a profit of ⁈llion a year earlier.
The company's results were hampered by a hefty charge of ⁈million as it lowered the value of assets at its automotive division, a move Continental said "cleans up financial risks."
Of that sum, ⁈illion was applied to its interior division, ⁈llion at its chassis and safety unit and ⁈million in its powertrain division.
Continental, based in Hannover, said revenue dipped 9.4 percent to ⁈llion in the quarter compared with nearly ⁈llion in 2008.
Continental has been hit by steep losses this year because of the lingering effect of the global financial crisis on auto makers and buyers.
Auto makers from Ford to BMW to Toyota have scaled back production as consumers retreat from buying new cars, and that has trimmed orders for parts and powertrains and other components that Continental provides.
For the first nine months, Continental reported a net loss of ⁈llion compared with a profit of ⁈million. Revenue fell to ⁈illion from ⁈illion in the January-September period of 2008.
Looking ahead, the company said it expects to hold steady "not withstanding persistently adverse economic conditions and lingering uncertainties."
It is also looking at various options for repaying or refinancing loans, with an eye toward a planned capital increase of ⁈ion to ⁈llion by the end of the first quarter of 2010.
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