Continental Q2 2023 preliminary results

Continental has published preliminary figures for Q2 2023, reporting that it anticipates sales within its Tires group sector of approximately 3.5 billion euros, a figure in line with the analyst consensus compiled by the company as of 12 July. The company expects adjusted EBIT margin of around 13.7 per cent (consensus 13.3%).

ContiTech group sector sales for Q2 2023 are expected to be around 1.7 billion euros (consensus 1.7 billion euros) with an expected adjusted EBIT margin of around 6.4 per cent (consensus 6.5%).

Sales for the Automotive group sector for the second quarter are expected to be around 5.1 billion euros (consensus 5.1 billion euros) with an adjusted EBIT margin of around -0.6 per cent (consensus 1.0%). Continental attributes this deviation to higher than expected negative effects from currency translation and ongoing issues with freight costs.

“Irrespective of this, we confirm the Automotive outlook for the full year,” states Continental. “We expect further positive effects during the course of the year, among others, from price negotiations with customers. We have already successfully concluded some negotiations in the third quarter.”

Continental Group results

Consolidated Q2 2023 sales for the Continental Group should be around 10.4 billion euros (consensus 10.4 billion euros) with an expected adjusted EBIT margin of around 4.8 per cent (consensus 5.8%). Adjusted free cash flow for the second quarter should be around -15 million euros (consensus 84 million Euro). Continental confirms the adjusted free cash flow outlook for the full year.

Continental will publish its financial report for the half-year to 30 June 2023 on 9 August 2023.