Continental announces preliminary Q2 2022 results

Continental AG has published its preliminary, unaudited key financial figures for Q2 2022, and these show that the company achieved consolidated sales of 9.4 billion euros, with an adjusted EBIT margin of 4.4 per cent.

Sales in the Tires group sector amounted to 3.4 billion euros and were accompanied by an EBIT margin of 13.8 per cent. Automotive group sector sales came to 4.3 billion euros, with an adjusted EBIT margin of -2.3%. Sales in the ContiTech group sector were 1.6 billion euros and the adjusted EBIT margin was 4.9 per cent.

Adjusted free cash flow for the Continental Group amounted to -687 million euros.

Furthermore, the company recognised impairments for goodwill as well as for property, plant and equipment assets in the Automotive group sector. These non-cash impairments totalled 370 million euros and are mainly due to the update of accounting valuation assumptions. Higher interest rates led to a higher discounting rate (pre-tax WACC) used in the goodwill impairment test. This amounted to 12.8 per cent at the end of the second quarter, compared with 10.7 per cent on 31 December 2021.

Some 75 million euros worth of assets related to Continental’s operations in Russia, mainly within the Tires business, were also subject to impairment due to the imposition of additional sanctions.

The ContiTech group sector recognised restructuring expenses of 63 million euros, mainly for its Mobile Fluid Systems business area.

The Continental Group confirms the outlook for fiscal 2022 that it published on 11 May 2022. It will publish its H1 2022 half-year financial report on 9 August 2022.