The Hanover-based automotive supplier exceeded analyst forecasts in the second quarter. But the group continues to have problems restructuring its core business.
(Photo: dpa)
Munich, Dusseldorf The automotive supplier Continental performed better operationally in the second quarter than analysts had expected. At EUR 9.4 billion, consolidated sales were around EUR 200 million higher than the experts’ estimates, Continental announced on Wednesday in Hanover. At 4.4 percent, the adjusted return on sales before interest and taxes (EBIT margin) was also above the average analyst forecast (4.2 percent). This corresponds to an EBIT of a good 410 million euros. Continental is sticking to the forecast for 2022 that was lowered in April.
However, with this interim result, Continental is below the figures from the same quarter of the previous year. The Group EBIT margin in 2021 was still over six percent. Production interruptions in China due to strict lockdowns, rising raw material and logistics costs and the Russian war of aggression in Ukraine are causing problems for the automotive industry as a whole.
Sales in the automotive sector in particular were better than the experts had expected Conti to be, but the operating result in the tire business was above expectations, while ContiTech was well below it.
But Continental continues to have problems restructuring its core business. The automotive division for car components, sensors and software also made losses in the second quarter. The adjusted EBIT margin was minus 2.3 percent with division sales of 4.3 billion euros.
Top jobs of the day
Find the best jobs now and
be notified by email.
CEO Nikolai Setzer and the new CFO Katja Dürrfeld are running out of time to make the division profitable again, one of the main goals of the two board members. After the departure of long-standing board members, Setzer is responsible for Continental’s core business.
Continental also has to write down almost half a billion euros, including 370 million euros on goodwill and property, plant and equipment, because interest rates have risen and the discount factor has increased. The additional sanctions against Russia are reflected in the tire division’s business there with write-downs of 75 million euros. Continental had recently considered a complete withdrawal from Russia.
More: ZF is in the race with Bosch, Conti and Schaeffler for the top spot in electronic steering systems