(new: closing prices)
The shares (Continental) of the automotive supplier and tire manufacturer lost four percent at the top. While the Dax reduced its early losses, so did Conti shares. In the end, they lost a good two percent to 118 euros.
“We and the majority of the analysts, whose estimates were taken into account for the consensus forecasts, had assumed that Conti would pay a dividend for 2020 despite a loss at group level,” wrote analyst Marc-René Tonn from Warburg Research in an initial reaction. He assumed 1.50 euros per share.
The analyst average is 1.86 euros.
At the same time, the suspension of the dividend payment shouldn’t have come as a complete surprise, he says. On the one hand, it is a fact that Conti has suffered a net loss and, on the other hand, a restructuring program is currently underway. Tonn also pointed out that the head of the works council at Conti, Hasan Allak, had already called at the end of January to forego a dividend payment for the past year.
Jefferies analyst Sascha Gommel suspects something similar, because he also referred to the ongoing restructuring with decided plant closings. Accordingly, the dividend suspension is likely to be a concession in view of the layoffs associated with the plant closings. According to Gommel, however, financial considerations are unlikely to have played a role./ck/la/mis/tih/he
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SHARE FOCUS Waiver dividends annoys Continental shareholders