News

Continental Swings to Profit in Q3

James L. Flint

• November 08, 2023

German car-parts manufacturer Continental reported a net profit of 298.6 million euros ($319.5 million) in the third quarter, a significant improvement from the loss of EUR210.8 million in the same period last year. This positive result was attributed to higher pricing, cost discipline, and stabilized supply chains.

Financial Results

• EBITDA decreased from EUR1.08 billion to EUR1 billion.
• EBIT rose to EUR460.7 million from EUR12.2 million.
• Sales amounted to EUR10.24 billion, representing a 1.5% decline compared to the previous year.

Sales Outlook

Despite the improved performance, Continental lowered its sales outlook for the full year. The company now expects sales between EUR41 billion and EUR43 billion, compared to the previous forecast of EUR41.5 billion to EUR44.5 billion. Sales in the automotive sector are projected to be around EUR20 billion to EUR21 billion due to the negative effects of exchange rates.

Positive Outlook for Tires Business

Continental raised its adjusted EBIT margin outlook for the tires business to around 12.5% to 13.5%, up from the previous range of 12% to 13%. This increase is based on strong results in the segment.

Industry Projections

Preliminary figures indicate that global production of passenger cars and light commercial vehicles reached approximately 22.3 million units in the quarter. Production is expected to grow by 5% to 7% in 2023, surpassing previous estimates of a 3% to 5% increase.