Continental nonetheless anticipates consolidated gross sales for fiscal 2023 of round €42 billion to €45 billion and an adjusted EBIT margin of round 5.5 to six.5 p.c. This consists of extra prices of round €1.7 billion on account of the value will increase for supplies, wages and salaries in addition to power and logistics. Adjusted free money stream for the present 12 months is predicted to be round €0.8 billion to €1.2 billion.

Improve in automotive manufacturing within the first quarter of 2023

The worldwide manufacturing of passenger automobiles and light-weight business automobiles weakened barely in contrast with the fourth quarter of 2022 (This fall 2022: 21.9 million models) however elevated year-on-year, in response to preliminary figures. In contrast with the primary quarter of 2022, it rose by round 6 p.c to 21.1 million models (Q1 2022: 19.9 million models).

Car manufacturing in Europe specifically grew to round 4.5 million models within the interval from January to March 2023 (+17 p.c). North America recorded a rise of round 10 p.c to three.9 million models. China, against this, suffered a weak begin to the 12 months, producing round 5.7 million automobiles within the first quarter of 2023. This was about 8 p.c down year-on-year.

For the 12 months as an entire, Continental continues to count on the worldwide manufacturing of passenger automobiles and light-weight business automobiles to extend by 2 to 4 p.c in contrast with the earlier 12 months’s determine of round 82.3 million automobiles.

Important year-on-year enchancment for Automotive

Within the Automotive group sector, gross sales elevated by 18.1 p.c to €5.0 billion (Q1 2022: €4.2 billion). With its gross sales rising organically by 17.1 p.c earlier than exchange-rate results and modifications within the scope of consolidation and international automotive manufacturing rising solely by round 6 p.c, the group sector once more outperformed the market. At 0.8 p.c, the adjusted EBIT margin was significantly larger than within the first quarter of the earlier 12 months (Q1 2022:
-4.1 p.c). Owing to the extra inflation-related prices of round €1 billion in 2023 in Automotive alone, worth agreements are once more being negotiated in partnership with clients. These agreements, coupled with rising automotive manufacturing, ought to result in an enchancment within the margin over the course of the 12 months. This enchancment must also be bolstered by operational measures such because the stabilization of provide chains, this system to enhance effectivity in analysis and growth, and financial savings below the Transformation 2019–2029 structural program.

As well as, Continental recorded a excessive order quantity within the Automotive group sector. This amounted to round €6.6 billion (+13.3 p.c) within the first three months of 2023 and included a serious order within the Autonomous Mobility enterprise space price round €1.7 billion for 360-degree radar protection from entrance, rear, aspect and long-range radars. They make sure the all-round monitoring of a car’s environment, thus rising street security.

The Autonomous Mobility enterprise space has additionally introduced an unique partnership with Aurora Innovation. Collectively, Continental and Aurora will deliver autonomous trucking methods to the American market – as early as 2027. The system will probably be out there for carriers and business fleet operators throughout the USA and can assist cut back prices to facilitate broader adoption. Continental will contribute not solely the complete {hardware} system, but additionally a whole fallback system.

Tires group sector makes good begin to the 12 months

The Tires group sector had first quarter. Regardless of declining volumes within the tire-replacement enterprise, gross sales in Tires elevated to €3.5 billion (Q1 2022: €3.3 billion, +5.1 p.c) and its adjusted EBIT margin was 13.5 p.c (Q1 2022: 17.1 p.c). The margin was decrease year-on-year due to the distinction in stock valuations, with elevated uncooked materials prices in the beginning of 2022 having a constructive affect on valuations and due to this fact on earnings.

Continental additionally acquired the “Environmental Achievement of the 12 months – Manufacturing” and “Tire of the 12 months” awards on the Tire Know-how Worldwide (TTI) Awards for Innovation and Excellence. Continental’s “Invisible Markers in Tires” mission got here out on high within the “Environmental Achievement of the 12 months – Manufacturing” class. The expertise contributes to higher traceability within the pure rubber provide chain. The Continental PremiumContact 7 was named Tire of the 12 months.

All of Continental’s present automobile tires are additionally appropriate for electrical automobiles and thus meet their excessive necessities. This underlines the premium tire producer’s product technique for electrical automobiles.

ContiTech repositions itself and will increase its adjusted EBIT margin

The ContiTech group sector took a step ahead within the first quarter, posting gross sales of €1.7 billion (Q1 2022: €1.6 billion, +10.2 p.c) and an adjusted EBIT margin of 6.4 p.c, in contrast with 2.3 p.c within the fourth quarter of 2022 (Q1 2022: 5.3 p.c). Particularly, the stabilization of manufacturing processes and worth changes on account of inflation contributed to its improved earnings.

From Could 2023, ContiTech may even be strategically realigned with the intention of enhancing its affect and effectivity, and bettering buyer and market proximity. The group sector, which focuses on materials functions, will step up its give attention to increasing its industrial enterprise. ContiTech may even consolidate its automotive original-equipment enterprise to generate synergies.

With this realignment, ContiTech will create the circumstances required for its growth from a standard product provider to a supplier of built-in options. The group sector additionally goals to reply in a extra built-in method than earlier than to the always altering necessities of its clients within the numerous markets and industries.

Consistent with the prevailing buyer construction, the economic enterprise will probably be divided regionally into three enterprise areas: Industrial Options Americas, Industrial Options APAC (Asia & Pacific) and Industrial Options EMEA (Europe & Center East). Nearly all of ContiTech’s automotive actions will probably be consolidated within the Unique Tools Options enterprise space, which is able to function globally in accordance with its buyer construction. The Floor Options enterprise space will retain its present construction.