Technology company Continental has posted consolidated sales of €9.4 billion for the last quarter. The company’s adjusted EBIT for the quarter was €411 million.
The market environment remained extremely challenging for automotive suppliers in the second quarter, noted Nikolai Setzer, CEO, Continental. He said, “We are making significant progress in the development and marketing of our technologies, with a strong order intake in automotive. This shows that we have the right strategy and positioning. Our most recent mobility study also supports this.”
Continental’s adjusted EBIT for the past quarter was above the reported EBIT of -€165 million. This was primarily attributable to accounting effects of around €370 million that had to be taken into account in the automotive group sector due to higher interest rates. In connection with its business activity in Russia, the company also impaired assets of around €75 million as a result of the additional sanctions imposed.
Furthermore, there were restructuring expenses of €63 million in the ContiTech group sector in the second quarter of 2022, primarily for the Mobile Fluid Systems business area due to the transformation of certain production sites communicated at the end of June 2022.
“The current headwind is rather like a hurricane and will not subside any time soon,” explained Katja Dürrfeld, CFO, Continental. He added, “We anticipate a rise in automotive production, and our measures to improve earnings are also taking effect. We are therefore maintaining our outlook for the current fiscal year.”
In the second half of the year, Continental anticipates a stabilisation of global supply chains, a slight improvement in the availability of semiconductors and continued stable energy supplies in Europe, particularly Germany. All in all, Continental anticipates consolidated sales for the year as a whole of around €38.3 to €40.1 billion and an adjusted EBIT margin of around 4.7% to 5.7%.