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 earnings and achieved its Group targets.
The focussed implementation of the strategy aimed at creating value is having an effect, the company emphasises. 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 in favour of the Spin-off The Automotive sector has taken another important step towards realising its full value creation potential.
Lower consolidated sales
Continental is forecasting sales of 39.7 billion euros for 2024. This corresponds to a decrease of 4.1 per cent 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 per cent. 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 per cent, the Group writes. In the previous financial year, this margin was 6.1 per cent.
Continental is reporting net income of €1.2 billion for 2024. This represents an increase of 1.0 per cent 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 is focussing 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 to spin off, we have also initiated the reorganisation of the company. Our divisions are now each organised with clear structures. They are at the forefront of their product segments and markets. They have matured and are now ready for more independence.“
2025 forecast
According to its press release, Continental expects global production of passenger cars and light commercial vehicles to change by -1 to +1 per cent in 2025. According to the company, this will fall by around 1 per cent 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 per cent.