Conti Pushes Powertrain IPO to 2020

April 29, 2019 at 9:58 AM

Continental AG is delaying the planned spinoff of its powertrain unit from later this year to sometime in 2020, depending on market conditions.

Earlier this year Conti created a separate legal entity for the powertrain business and announced plans to rename the group Vitesco Technologies. The supplier had planned to issue a partial IPO, in which it retains control of the business, by mid-2019.

The delay was announced as part of Conti’s first quarter results. Sales were flat through the first three months of 2019 at €11.0 billion ($12.3 billion). But high investment spending and a drop in global vehicle production caused Conti’s adjusted operating income to fall 17% for the period to €884 million ($984 million).

Conti eventually will become a holding company for three business sectors: automotive, powertrain and rubber. The automotive operations will be renamed Continental Automotive next year, consisting of Autonomous Driving Technologies (currently Chassis & Safety) and Vehicle Networking Technologies (Interiors).