Group revenue of 10.0 billion euros
Continental the second quarter of 2024 closed as expected according to its own statements and improved in all business areas Results achieved compared to the previous quarter. The company also recorded an improvement compared to the same quarter last year.
Nikolai Setzer, CEO of Continental, explains: „We have seen significant improvements in Automotive and aim to further improve in the coming quarters. Tires has achieved a good result. ContiTech has also developed positively despite an industrial environment that remains weak.“ These improvements in results are primarily attributable to Continental's measures in the business areas, especially in the current challenging market environment.
Continental thus achieved in the first half of this year Group turnover of €10.0 billion. Adjusted operating profit rose by 40.6 percent year-on-year to €704 million. This corresponds to an adjusted EBIT margin of 7.0 percent.
Automotive
In the second quarter, sales in the Automotive sector decreased by 3.4 percent to 5.0 billion euros. Nevertheless, the EBIT margin was increased to 2.7 percent through successful price negotiations, cost reductions, and efficiency measures. Continental expects these positive effects to increase in the second half of the year.
Automotive production in Europe fell by 6 percent year-on-year worldwide in the second quarter. Nevertheless, Continental received a major order worth 2 billion euros for a display. The total order volume in the automotive sector in the second quarter was 5.9 billion euros.
Tires
The Tires division achieved sales of 3.4 billion euros, though 1.7 percent less than the previous year. The EBIT margin rose to 14.7 percent due to strong tire replacement business in Europe.
Since this year, Continental has been producing tyres in Portugal with a CO2-neutral footprint, supported by an electrically powered steam boiler and solar power. The plant has a capacity of 18 million tyres per year. Continental plans to operate all tyre plants with a CO2-neutral footprint by 2040.
ContiTech
The ContiTech division achieved sales of 1.6 billion euros, a decrease of 5.5 percent compared to the previous year. However, the EBIT margin rose to 7.1 percent due to strong cost discipline and successful price negotiations in the automotive sector.
ContiTech also secured a major order worth approximately €40 million for the world's most powerful conveyor belt.
Forecast for the rest of 2024
For 2024, Continental estimates consolidated sales of €40.0 billion to €42.5 billion. The EBIT margin is expected to remain stable.
For Automotive, revenues of €19.5 billion to €21.0 billion are expected. For Tires, revenues of €13.5 billion to €14.5 billion are estimated. ContiTech anticipates revenues of €6.6 billion to €7.0 billion.