EQS-Adhoc: Continental Releases Preliminary Figures for Fourth Quarter and Fiscal 2022 – Adjusted Free Cash Flow Below Target Range

Based on initial preliminary and unaudited figures, the key financial figures for the fourth quarter and fiscal 2022 as a whole are as follows: 

• Adjusted free cash flow for the Continental Group is expected to be around €1.6 billion in the fourth quarter and around €200 million for the year as a whole (outlook: around €600 million to €800 million). The main reason for the negative deviation is the lower-than-expected cash inflow, resulting in a correspondingly high level of receivables in the Continental Group. Another reason is the lower-than-expected earnings in the ContiTech group sector.

Despite the unsatisfactory cash flow situation as at the reporting date, the consolidated sales and adjusted margin outlook is expected to be achieved:

• The Continental Group’s consolidated sales amounted to around €10.3 billion in the fourth quarter and around €39.4 billion for fiscal 2022 as a whole (outlook: around €38.3 billion to €40.1 billion). The adjusted EBIT margin is expected to be around 4.8% in the fourth quarter and around 5.0% for fiscal 2022 as a whole (outlook: around 4.7% to 5.7%).
• In the Automotive group sector, sales amounted to around €4.8 billion in the fourth quarter and around €18.3 billion for fiscal 2022 as a whole (outlook: around €17.8 billion to €18.8 billion). The adjusted EBIT margin is expected to be around 2.1% in the fourth quarter and around -0.2% for fiscal 2022 as a whole (outlook: around -0.5% to 1.0%).
• In the Tires group sector, sales amounted to around €3.7 billion in the fourth quarter and around €14.0 billion for fiscal 2022 as a whole (outlook: around €13.8 billion to €14.2 billion). The adjusted EBIT margin is expected to be around 10.3% in the fourth quarter and around 13.1% for fiscal 2022 as a whole (outlook: around 12.0% to 13.0%).
• In the ContiTech group sector, sales amounted to around €1.7 billion in the fourth quarter and around €6.6 billion for fiscal 2022 as a whole (outlook: around €6.3 billion to €6.5 billion). The adjusted EBIT margin is expected to be around 2.3% in the fourth quarter and around 4.7% for fiscal 2022 as a whole (outlook: around 6% to 7%). The lower-than-expected earnings are mainly due to increased production costs, an unfavorable product mix and pandemic-related business restrictions in China.

The preliminary financial figures for fiscal 2022 will be published on March 8, 2023. The annual report for fiscal 2022 will be published on March 22, 2023.

“Adjusted EBIT” and “adjusted free cash flow” are defined in the glossary of financial terms on page 24 of the 2021 annual report, which is available at www.continental-ir.com.

1537335  17-Jan-2023 CET/CEST