(fxcue news) - Shares of Continental AG were gaining around 7 percent on the German trading after the automotive parts maker reported Monday significantly higher profit in its third quarter, mainly as Automotive sector was benefited by the measures taken to improve earnings. Further, the company maintained fiscal 2024 adjusted margin outlook, but trimmed its sales forecast, after adjusting its outlook for ContiTech. Continental said it does not expect the industrial business to recover in the fourth quarter. CEO Nikolai Setzer said, "Automotive is on track to fulfill the requirements for a spin-off by the end of 2025. This spin-off is still being evaluated. Furthermore, the measures we have defined and implemented to improve earnings are having the desired effect. … In this challenging year-end sprint, we aim to improve Automotive's earnings even further." For the full year, Continental maintained group adjusted EBIT margin outlook of around 6 to 7 percent; as well as outlook for Automotive and Tires sectors. However, the company now projects sales in the range of around 39.5 billion euros to 42.0 billion euros, lower than prior guidance range of 40.0 billion euros to 42.5 billion euros. For the ContiTech group sector, Continental now expects sales of around 6.2 billion euros to 6.6 billion euros, down from earlier expected 6.6 billion euros to 7.0 billion euros. Adjusted EBIT margin for the sector would be around 5.8 to 6.3 percent, lower than previously expected 6.5 to 7.0 percent. Continental expects the production of passenger cars and light commercial vehicles to decrease year-on-year. Demand in the tire-replacement business is expected to pick up slightly in the second half of 2024 compared with the first six months, while the industrial business worldwide is expected to remain sluggish. The Automotive group sector aims to make further gains in adjusted EBIT in the fourth quarter. In the third quarter, net income was 486 million euros, a growth of 62.8 percent from 299 million euros in the prior year. Earnings per share were 2.43 euros, compared to 1.49 euros a year ago. Adjusted operating result was 873 million euros, up 36.0 percent from last year's 642 million euros, corresponding to an adjusted EBIT margin of 8.9 percent, compared to 6.3 percent in the prior year. The Automotive group sector was benefited by the measures such as reducing costs and adjusting prices, and the Tires group sector posted a good adjusted EBIT on the back of improved business in Europe. Earnings in ContiTech, by contrast, were dented by continued weak industrial development in Europe and North America. Third-quarter consolidated sales, meanwhile, fell 4 percent to 9.83 billion euros from prior year's 10.24 billion euros. In the Automotive group sector, sales dropped 4.7 percent year-over-year to 4.8 billion euros, hampered primarily by declining markets. The ContiTech group sector's sales declined 10 percent to 1.5 billion euros, while the Tires group sector generated sales of 3.5 billion euros, up 1.9 percent. The global production of passenger cars and light commercial vehicles fell around 5 percent to 21.6 million units from 22.6 million units a year ago. At around 3.6 million units, vehicle production in Europe dropped 6 percent, while production in North America declined 5 percent to around 3.8 million vehicles. China posted a 3 percent decline, producing around 7.3 million vehicles in the third quarter. On the XETRA in Germany, Continental shares were trading at 60.64 euros, up 7.3 percent. For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.