According to Morgan Stanley, the pre-announced second quarter results reveal an adjusted
group EBIT figure “10 times higher than…expected.” The 5.9% EBIT margin therefore compares very favourable with the analysts’ 0.6% forecast.

Furthermore, this positive surprise appears to be split 50% between the Auto and Rubber groups, where sales in the Chassis & Safety division and “strong winter tyre sell-in won the quarter.” However, the analysts also warn that while the company has obviously benefited from “early winter tyre sell-in…this cannot be extrapolated into the third quarter where we think profit will certainly be lower.”

The Morgan Stanley report once again gave veiled support for a combination with Schaeffler that sees Continental AG in the drivers seat. Their vision of a successful combination of the two companies is a merger that will: “improve Conti’s financial strength and independence” and include “a long-term framework for its involvement with…(Schaeffler) from both a strategic, financial and ownership perspective.” ." (Tyres & Accessories/Staffordshire, U.K.)