Continental AG

CON

Equity

ISIN DE0005439004 / Valor 327800

Xetra (2025-04-04)

EUR 60.56-2.64%

Continental AG
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About company

Continental AG, established in 1871, is a leading technology company specializing in the development of innovative solutions for mobility and transportation. The company focuses on creating safe, efficient, and intelligent technologies for vehicles, machines, and traffic systems. Despite challenges such as a weak macroeconomic environment in Europe and a global decline in automotive production, Continental has successfully improved its earnings and met its corporate targets. The company is strategically enhancing its value-creation efforts, including the decision to spin off its Automotive group sector, to better capitalize on its potential. Looking ahead, Continental aims to increase its earnings in 2025, even as the global automotive market faces continued challenges.

Summarized from source with an LLMView SourceSector: Non-Energy Materials

Sales and Revenue

In the third quarter of 2024, Continental AG reported consolidated sales of €9.8 billion, a decrease of 4.0 percent compared to €10.2 billion in the same quarter of 2023. This decline in sales was primarily attributed to weaker industrial demand in Europe and North America, particularly affecting the ContiTech group sector.

Adjusted EBIT and Margin

Continental AG's adjusted EBIT for the third quarter of 2024 increased significantly to €873 million, up 36.0 percent from €642 million in Q3 2023. The adjusted EBIT margin also improved to 8.9 percent from 6.3 percent in the previous year, driven by price adjustments and disciplined cost management across the group sectors.

Net Income Growth

The company achieved a net income of €486 million in the third quarter of 2024, marking a substantial increase of 62.8 percent compared to €299 million in Q3 2023. This growth was supported by a positive impact from a €125 million payment by Vitesco Technologies related to cost allocations from investigations.

Free Cash Flow

Continental AG's adjusted free cash flow for the third quarter of 2024 was €323 million, a decrease of 30.6 percent from €466 million in the same period of the previous year. The decline in free cash flow was influenced by the challenging industrial environment and lower sales in the ContiTech group sector.

Outlook and Forecast

For the fiscal year 2024, Continental AG expects group sales to range between €39.5 billion and €42.0 billion, with an adjusted EBIT margin of around 6.0 to 7.0 percent. The company anticipates continued challenges in the industrial sector but expects improvements in the Automotive and Tires group sectors, with a focus on cost reductions and higher production volumes.

Summarized from source with an LLMView Source

Key figures

-7.65%1Y

-10.2%3Y

12.8%5Y

Performance

32.8%1Y

36.5%3Y

39.6%5Y

Volatility