Earnings improvement achieved in 2024
Continental reported its business figures for 2024 at the beginning of last week, with the automotive supplier stating in its press release that it had further improved its results and achieved its corporate targets.
The focused implementation of the strategy geared towards value creation is having an effect, the company emphasizes. According to the Group, this is taking place against the backdrop of weak economic development, particularly in the core market of Europe, as well as a global decline in automobile production.
Furthermore, with the Executive Board's decision to spin off the Automotive sector, Continental has taken another important step towards realizing its full value creation potential.
Lower Group sales
Continental is forecasting sales of 39.7 billion euros for 2024. This corresponds to a decrease of 4.1 percent compared to 2023, when sales amounted to 41.4 billion euros.
The automotive supplier was able to increase its reported operating result by 6.6 percent. It amounted to 2.5 billion euros in 2024 after 2.5 billion euros in 2023, which corresponds to an improved EBIT margin of 6.8 percent, the Group writes. In the previous financial year, this margin was 6.1 percent.
Continental is reporting net income of €1.2 billion for 2024. This represents an increase of 1.0 percent compared to the previous year.
Focus on value creation
"The weak economic development, particularly in Europe, including a decline in automotive production, created a significant headwind last year," said Nikolai Setzer, CEO of Continental.
According to Setzer, the company focuses on value creation. Thanks to the consistent implementation of this strategy, Continental has further improved its results in a challenging environment and achieved its annual targets at Group level.
Setzer also commented: "With the Executive Board's decision on the spin-off, we have also initiated the reorganization of the company. Our divisions now each have clear structures. They are at the forefront of their product segments and markets. They have matured and are now ready for more independence."
Forecast for 2025
According to its press release, Continental expects global production of passenger cars and light commercial vehicles to change by -1 to +1 percent in 2025. According to the company, this will fall by around 1 percent year-on-year to more than 89 million vehicles in 2024.
The company expects Group sales of around 38.0 to 41.0 billion euros in 2025. The Group sees the adjusted EBIT margin for 2025 in a range of around 6.5% to 7.5%.