Continental AG:Automotive supplier adapts outlook in response to the worsening economic environment
Continental AG / Profit WarningRelease of an Ad hoc announcement according to § 15 WpHG, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.----------------------------------------------------------------------Hanover, September 13, 2008. In view of the substantial worsening of theeconomic environment on the vehicle markets in North America and Europe inthe third quarter and the unchanged high burdens from increased rawmaterial cost, Continental AG, Hanover, no longer expects at present tofully attain the goals it set for fiscal 2008. Conditions have in partworsened significantly, especially in the automotive divisions, compared tothe good development in the first six months of the current fiscal year.The rubber divisions are affected as well but not to the same extent.From the current standpoint, an EBIT margin of around 8.5% is expected forfiscal 2008. This EBIT-margin is before the adjustment for amortizationresulting from the purchase price allocation as well as integration andrestructuring expense.It should be noted positively that the planned reduction of indebtednesswill be supported additionally by the high conversion rate that occurred inSeptember for the convertible bond due in May 2011. As of today, more than80% of the amount that was outstanding at the end of 2007, €377.1 million,has been converted.A comprehensive interim reporting with more detailed statements will beprovided when the figures for the first nine months are released on October30, 2008.13.09.2008 Financial News transmitted by DGAP---------------------------------------------------------------------- Language: EnglishIssuer: Continental AG Vahrenwalder Straße 9 30165 Hannover DeutschlandPhone: +49 (0)511 938-1068Fax: +49 (0)511 938-1080E-mail: ir@conti.deInternet: www.conti.deISIN: DE0005439004WKN: 543900Indices: DAXListed: Regulierter Markt in Frankfurt (Prime Standard), Hannover, Hamburg, Luxembourg, Stuttgart; Freiverkehr in Berlin, München, Düsseldorf; Terminbörse EUREX; Foreign Exchange(s) SWX, Wien End of News DGAP News-Service ---------------------------------------------------------------------------