Continental Tyres has announced to have achieved revenues of €8.6 billion in Q2CY23. The ContiTech group sector achieved solid results, while earnings in automotive fell short of expectations, mainly due to currency effects and continuing costs for special freight.
Continental has adjusted its outlook for sales in the tyres group sector and consolidated sales. In the second quarter of 2023, the company achieved consolidated sales of €10.4 billion, a growth of 10.4% YoY from Q2 2022’s €9.4 billion.
In the automotive group sector, sales increased by 19% to €5.1 billion (Q2 2022: €4.3 billion). With its sales growing organically by 20.1% before exchange-rate effects and changes in the scope of consolidation and global automotive production rising by around 16%, the group sector again outperformed the market.
Owing to the expected additional inflation-related costs of around €1 billion in 2023 in automotive alone, price agreements still need to be negotiated in partnership with customers. Further negotiations were successfully concluded in July of this year.
Continental also achieved a high order intake in the automotive group sector of around €8.6 billion in the second quarter of 2023. The order from the exclusive partnership with Aurora, which the Autonomous Mobility business area announced in April, made a strong contribution. Continental and Aurora will bring autonomous trucking systems to the mass market – starting with the USA in 2027. This business alone will generate an order intake of around €4.8 billion for the company.
Despite declining volumes in the tyre-replacement business, it increased its sales to €3.5 billion compared to Q2 2022’s €3.4 billion, representing a 2.3% YoY growth. It also became the first manufacturer to launch a production tyre with a high share of sustainable materials – the UltraContact NXT. Comprising up to 65% renewable and recycled materials, it combines a high share of sustainable materials with maximum safety and performance.
Meanwhile, the ContiTech group sector delivered second-quarter results, posting sales of €1.7 billion with a YoY growth of 8% over Q2CY22.
In keeping with its strategic realignment, ContiTech also strengthened its industrial business in the second quarter, with Continental fully acquiring the printing technology business of Trelleborg, headquartered in Lodi Vecchio, Italy.
This strategic step expands the technology company’s range of surface solutions in the field of printing technology while boosting its business with industrial clients. As a result of the acquisition, Continental will gain around 600 employees at eight locations – in Italy (Lodi Vecchio and Dresano), France, Slovenia, the USA, Brazil, Japan and China – who mainly produce printing blankets for offset and digital printing.
The strategic realignment of ContiTech launched in May 2023 aims to enhance the group sector’s impact and efficiency, improve customer and market proximity and further expand its industrial business.
Nikolai Setzer, CEO, Continental, noted that the company will need to make up considerable ground in the year's second half. By doing so, it will also improve its consolidated margin.
“Through our partnership with Aurora, we have generated significant order intake and taken a major technological step forward in autonomous mobility. Together, we will bring the first commercially scalable autonomous trucking system to the US market,” he added.
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