continent 2022

Continental accelerated its revenues by another 16.7% in 2022 to 39,400 million euros, which means 5,600 million more (which they say will soon) compared to the 33,800 million invoiced in 2021, and all this despite the “difficult macroeconomic environment”, mainly due to to the invoice for the Ukraine-Russia war, according to the balance sheet recently presented by the German multinational. For 2023, Continental emphasizes that it “expects greater profits in 2023 thanks to the sustained recovery of the market” and forecasts that revenues will be around 42,000 and 45,000 million euros, of which between 14,500 and 15,500 million euros would come from the division of tires .

In view of this, the German multinational, global supplier to the automotive industry and tire manufacturer, points out that “despite the difficult macroeconomic environment, Continen reached its sales target and adjusted profits in the 2022 fiscal year. the war in Ukraine, the restrictions due to the coronavirus pandemic in China, the current shortage of semiconductors and the additional costs of around 3.3 billion euros derived from increases in the prices of raw materials, semi-finished products, energy and logistics. For the current financial year, Continental anticipates an increase in sales and profits, thanks mainly to increased production figures for passenger cars and light commercial vehicles and the maintenance of cost discipline.

continent 2022
Nikolai Setzer, CEO of Continental.

Thus, when presenting the company’s balance sheet last year, Nikolai Setzer, CEO of Continental, recognizes that “2022 was especially difficult for us in several aspects. The war against Ukraine raised the prices of raw materials, semi-finished products, energy and logistics. It is also the reason why we continue to fight for a controlled withdrawal from the Russian market. Despite the challenges we face, we have achieved good operating results. We met our sales and profit forecasts for the Continental Group and achieved a respectable result. This was made possible thanks to the hard work and commitment of Continental’s nearly 200,000 employees worldwide, to whom I want to express my sincere thanks.”

Continental details that in order to face the different challenges of the market and strengthen its resistance, it implemented “a more focused cost management and a more integrated supervision of our electronics purchasing and logistics chain”, while expanding its base of suppliers. “We have shown ourselves to be resilient in times of crisis and are well positioned to ensure Continental’s long-term development by focusing on value creation,” said Setzer.

Continental also acknowledges that it has “initiated price adjustments across all sectors of the group to offset the effects of inflation. According to preliminary data, consolidated sales totaled €39.4 billion in the last financial year (2021: €33.8 billion euros, +16.7%). Before consolidation perimeter changes and currency effects, sales increased by 12.3%. €1.9 billion, +5.2%), corresponding to an adjusted EBIT margin of 5.0% (2021: 5.5%). of EUR 1,000 million. Higher interest rates and other valuation-related effects, in particular, led to impairment losses of more than EUR 850 million in the group’s automotive sector. In connection with its business activity in Russia, Continental also affected assets worth ce €87 million as a result of the sanctions imposed. Consequently, the net result amounted to 67 million euros (2021: 1.4 billion euros)”.

Continental expectations for 2023

Looking ahead to this year, Continental expects that “world production of passenger cars and light commercial vehicles will increase by between 2% and 4% in 2023. In 2022, this figure will increase by around 7%, reaching around 82 million vehicles. It is understood that the significantly higher costs of materials, wages and salaries, as well as energy and logistics, amounting to around 1.7 billion euros, will again weigh on the results position in the financial year 2023. Based on these assumptions and taking into account the exchange rates in force At the beginning of the year, Continental forecasts consolidated sales for 2023 between 42,000 and 45,000 million euros and an adjusted EBIT margin of between 5.5 and 6.5% approximately”.

By sectors of activity, Continental predicts that “the sector automotive generate sales between 20,500 and 21,500 million euros and an adjusted EBIT margin between 2% and 3%. for the industry tires, Continental forecasts sales of between 14.5 and 15.5 billion euros, with an adjusted EBIT margin between 12 and 13%. Finally, the technical products business sector Conti Tech achieve sales of around €6.8 billion to €7.2 billion and an adjusted EBIT margin of around 6 to 7 percent.”

“We stabilized our profitability throughout the year. In the second half of 2022, in particular, we achieved year-on-year gains and implemented and optimized many processes. However, we know that we have to keep improving if we are to reach our mid-term targets, so we are determined to increase our profits. In the medium term, Continental aims to achieve a consolidated adjusted EBIT margin of between 8 and 11%,” said Katja Dürrfeld, CFO of Continental.