Continental cuts production forecast for 2021 due to chip bottleneck

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 Continental cuts production forecast for 2021 due to chip bottleneck

The logo of Continental tire company is displayed before the annual news conference in Hanover.

BERLIN-German automotive supplier Continental AG cut its production forecast for the production of passenger and light commercial vehicles in 2021 on Thursday due to a Chip Supply Crisis it sees persisting throughout the year.

Continental reduced its forecast for production to rise 8% to 10%, down from last forecast of 9% to 12% It also cut from 17 billion sales forecast on the upper end of its 2021 segment to 16.5 billion euros.

Continental shares were down 3.5% at 0719 GMT.

The company reported a 50% jump in second-quarter sales, however, said semiconductors bottlenecks slowed automotive production in the quarter.

In the automotive technologies industry, the burden of the chip bottleneck is clearly being felt, Chief Executive Nikolai Setzer said in statement.

Sales came in at 9.9 billion euros in the second quarter and adjusted earnings before interest and taxes were at 711 million euros, compared to a loss of 635 million euros in the same quarter last year.