Continental tracks best day in 4 years after pre-close comments on auto unit
Updates share move, adds company statement
** Shares in German auto parts and tires maker Continental CONG.DE jump around 11% to three-week high, with a trader pointing to pre-close comments on auto unit
** In its final communication ahead of publishing quarterly results on Aug. 7, Continental said that pricing progressed in Q2 as expected
** It added it expected the first positive effects from its fixed cost savings program to contribute in Q2 and a continued tailwind from raw materials at least at the level of Q1 at its tire unit
** "Investors were mostly short into CON Q2 as especially a weak Auto unit was feared. The unit seem to have performed better than feared and so shorts will probably be covered," a local trader sys
** J.P.Morgan says in a Q2 preview note that after the pre-close call with the company and in line with the commentary during Q1 and the broker's conference, it expects revenues down 3% and a 7% group margin
** "The automotive division should benefit in Q2 from price increases, cost savings and R&D reimbursements bringing the first half auto margin close to the break even margin level" - JPM
** The stock, on track for best day since March 2020 if gains hold, is the top gainer on Germany'sblue-chip index .GDAXI and the pan-European STOXX 600 index .STOXX
Reporting by Ozan Ergenay
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