Continental Shares Plummet, Michelin’s drop
Shares in Continental AG have fallen by the most significant margin in seven years – 11 September 2001 – in Frankfurt, leading to the downgrading of the stock by Merrill Lynch. The decline of up to 8.1 per cent today, report financial news sources, sees the stock plummet to 53.65 euros. For the year, Continental’s stock is down 40 per cent, its value now down at 8.7 billion euros. The fall comes as a result of a variety of challenges to automotive stocks including the rapid ascent of raw materials costs and the decline in demand from traditional markets.
Concurrently, French competitor Michelin faced a similarly difficult day on the markets, with shares declining by 5.9 per cent in Paris. Overall, Bloomberg’s Europe Auto Parts & Equipment Index – including the two manufacturers – is down in 2008 by 31 per cent, having included the not inconsiderable hit from today’s declines for its two biggest members, being down 4 per cent for the day.