Continental AG Upholds 2024 Financial Outlook Despite First Quarter Challenges

Continental AG reported a subdued performance in the first quarter of 2024, with consolidated sales dropping by 5.0 percent to €9.8 billion compared to €10.3 billion in the same period last year. The company noted a significant decline in Adjusted EBIT, falling 65.8 percent to €196 million. Despite these setbacks, including a net income swing to a loss of €53 million and a negative adjusted free cash flow of €1.1 billion, Continental confirmed its full-year financial outlook for 2024.

CEO Nikolai Setzer expressed confidence in the company’s strategies and the ongoing implementation of measures aimed at reaching mid-term targets. Setzer anticipates the latter quarters of 2024 to show improved performance across the Automotive, Tires, and ContiTech sectors. CFO Katja Garcia Vila also indicated potential across all group sectors despite the sluggish start.

The automotive sector saw the initiation of another high-performance computer system in China, reflecting Continental's continued innovation and demand in automotive technologies. Furthermore, the Tires sector continued to excel in product quality, winning several awards for its PremiumContact 7 and SportContact 7 tires.

Overall, Continental expects to maintain its projected consolidated sales for 2024 in the range of €41.0 billion to €44.0 billion and aims for an adjusted EBIT margin of about 6.0 to 7.0 percent. This guidance comes despite a slight decrease in global passenger car and commercial vehicle production in the first quarter of the year.