Continental AG Significantly Increases Earnings in Second Quarter

Continental AG reported a substantial rise in Q2 2024 earnings despite a slight drop in sales. Consolidated sales reached €10.0 billion, marking a 4.1 percent decrease from Q2 2023's €10.4 billion. However, adjusted EBIT soared by 40.6 percent, reaching €704 million, translating to an EBIT margin of 7.0 percent.

Net income was €305 million, a 46.2 percent increase year-on-year. Adjusted free cash flow improved to €147 million, compared to -€14 million in Q2 2023. CEO Nikolai Setzer attributed the earnings surge to robust measures in all group sectors, including price adjustments and cost-cutting initiatives.

The Automotive group sector saw improved margins from price negotiations and cost-reduction efforts. The Tires group sector benefited from a strong replacement business in Europe, while ContiTech showed improvement due to price adjustments and cost discipline despite weak industrial demand.

Continental adjusted its fiscal 2024 outlook, expecting lower production of passenger cars and light commercial vehicles. Consolidated sales are now forecasted to range between €40.0 billion and €42.5 billion, with the adjusted EBIT margin remaining at 6.0 to 7.0 percent.