Continental Increases Profit and Sets Realignment Goals for 2025

Continental AG reported a rise in its adjusted EBIT to €2.7 billion, marking an increase of 6.6% from the previous year. Despite a decrease in consolidated sales to €39.7 billion, the company maintained its net income at €1.2 billion. The adjusted free cash flow fell to €1.05 billion, down 18.6%. CEO Nikolai Setzer emphasized value creation as a priority, while CFO Olaf Schick highlighted the effectiveness of cost and efficiency measures.

Continental's Automotive sector posted an EBIT margin of 2.3%, boosted by cost reduction strategies. The Tires group maintained its strength with a 13.7% margin, while ContiTech reported a 6.2% margin within its target range. The realignment includes spinning off the Automotive sector, aiming for independence. The company forecasts sales of €38-41 billion in 2025, targeting a 6.5-7.5% EBIT margin.