Continental AG Reports Increased Earnings for Q3 2024

Continental AG announced an increase in earnings for the third quarter of 2024, despite a drop in overall consolidated sales to €9.8 billion from €10.2 billion in Q3 2023. Adjusted EBIT rose significantly by 36% to €873 million, and the adjusted EBIT margin improved to 8.9% compared to 6.3% in the same period last year. Net income saw a rise of 62.8% to €486 million. However, adjusted free cash flow declined by 30.6% to €323 million.

The Automotive sector showed progress with a 4.2% rise in the adjusted EBIT margin, attributed to effective cost management and price adjustments. The Tires sector maintained strong profitability with a 14.5% adjusted EBIT margin, benefiting from increased winter tire sales. Despite these gains, the ContiTech sector experienced a setback due to weak industrial demand in Europe and North America.

Continental has revised its fiscal 2024 outlook, adjusting sales expectations to €39.5-42.0 billion with an expected EBIT margin of 6.0-7.0%. The release acknowledges challenges in automotive production and ongoing concerns in the industrial sector for ContiTech.