Major organisational changes proposed by Continental AG have gained the blessing of the company’s Supervisory Board. At a meeting today, board members approved the creation of a new Continental AG holding structure, ‘Continental Group’, and also gave the green light to making an independent legal entity out of the company’s Powertrain division ahead of its partial initial public offering (IPO) in mid-2019.
Tyre maker and automotive technology firm Continental says it will be “one of the largest organisational realignments” in its history: The Executive Board of Continental AG has announced plans to create a holding structure under a new umbrella brand, Continental Group, and support this holding structure with three new business sectors – Continental Rubber, Continental Automotive and Powertrain. These sectors will succeed the current Automotive Group and Rubber Group.
The Government has committed to ending the sale of new conventional petrol and diesel cars and vans by 2040 and is under pressure from some quarters to bring this deadline forward. Technology company and tyre maker Continental, on the other hand, recommends a more protracted timetable for phasing out conventional power sources – and it has called upon governments to provide sufficient breathing space for the development of appropriate technologies.
Key data pertaining to first quarter performance were presented at the Continental Annual Shareholders’ Meeting today ahead of the release of complete Q1 2018 figures on 8 May.
Preliminary figures for Continental’s 2017 financial year were presented today and show an 8.5 per cent growth in sales, to 44 billion euros, and an EBIT margin of 10.9 per cent. With these two figures, the tyre maker and technology provider states that it surpassed its targets for the year. Net income increased 6.5 per cent year-on-year to 3 billion, which equates to earnings of 14.92 euros per share.
Preliminary figures for Continental’s 2017 financial year were presented today and show an 8.5 per cent growth in sales, to 44 billion euros, and an EBIT margin of 10.9 per cent. With these two figures, the tyre maker and technology provider states that it surpassed its targets for the year. Net income increased 6.5 per cent year-on-year to 3 billion, which equates to earnings of 14.92 euros per share.
Preliminary key data for the 2017 fiscal year published this week shows annual sales at Continental AG to have met estimates announced in November. The tyre maker and automotive technology company reports sales of “around 44 billion euros,” while the adjusted EBIT margin for the year is approximately 10.8 per cent. Continental views its annual targets as being “exceeded”.
The word Continental has used to describe its sales growth in the nine months to 30 September 2017 is “strong”. Sales rose 9.0 per cent during the period to 32.7 billion euros, a result Executive Board chairman Dr Elmar Degenhart attributes to putting “money on the right horses with our technologies for safe, efficient and intelligent mobility.”
Although sales rose, sharp increases in raw material costs held back earnings within Continental’s Tire and ContiTech divisions in the first half of 2017. Reporting the company’s first half and second quarter results, Executive Board chairman Dr Elmar Degenhart shared that despite a 9.4 per cent year-on-year increase in sales during the six months to 30 June, to 8.6 billion euros, these costs impacted the Continental Rubber Group’s earnings by some 300 million euros. Rubber Group EBIT dropped 11.2 per cent to 1.2 billion euros in the first half of the year and the margin contracted from 17.7 per cent to 14.4 per cent.
Rhetoric coming from some corners would have us believe that diesel cars are evil and electric vehicles are the way, the truth and the light. Yet the humble diesel and its petrol-driven cousin aren’t finished yet. Not by a long way. Growing global demand for mobility will see internal combustion engines remain with us for some time to come, hopefully long enough for the champions of electromobility to overcome the technology’s current drawbacks.
Continental has selected an architectural partner for the construction of its new corporate headquarters in Hannover, Germany. The tyre and technology company will work with Munich-based firm Henn GmbH. A panel of ten judges selected Henn from a shortlist of three finalists.
Tyre maker and automotive systems supplier Continental AG has reported sales of €11.0 billion in the first quarter of 2017, a 11.7 per cent increase year-on-year. Organic sales growth came to 9.5 per cent. At the same time, net income attributable to the shareholders of the parent rose by 2.1 per cent to €749.6 million, or €3.75 per share. This overall positive bottom line result was achieved in spite of increased raw material prices; Continental also expects to see rising raw material prices in the second quarter of the year.
Although Continental AG won’t publish its full first quarter business figures until 9 May, key data for the three months to 31 March 2017 were released during the company’s Annual Shareholders’ Meeting today. Sales amounted to €11 billion during the quarter, a 11.7 per cent increase year-on-year. Organic growth, adjusted for changes in the scope of consolidation and exchange rates, amounted to 9.5 per cent, to which the Automotive Group’s business made a considerable contribution. The adjusted operating result (adjusted EBIT) increased to around €1.2 billion, while the adjusted EBIT margin was 10.7 per cent.
During the Continental AG press conference at the Auto Shanghai show in China, chief executive officer Dr Elmar Degenhart confirmed that the company intends to continue investing in China “at a comparable level” to recent years. Continental has invested €1.3 billion in the country over the past half a decade. Degenhart also commented that Continental anticipates its sales will grow at a faster rate than the market in China, particularly in the field of mobility services.
A change of leadership will occur within Continental’s business in China in June. On the first of the month, Enno Tang will become president of the Continental organisation for China. The current head of the Chassis & Safety division, China, and the Vehicle Dynamics business unit, China replaces Dr Ralf Cramer, who will conclude his contract as planned by mid-August 2017 and pursue new career opportunities outside of Continental. In his new role, Tang will report to the chairman of Continental AG’s Executive Board, Dr Elmar Degenhart.
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