Continental shares rose due to increased profits
Shares of Continental rose in price by 10.6% after it was announced that in the third quarter, the German concern received EBIT profit of 873 million euros, which is approximately 11% higher than analysts predicted. Net profit increased by 62.8% and amounted to 486 million euros.
Continental's sales in the reporting period decreased by 4% to 9.8 billion euros. At the same time, the company's tire division increased its revenue, which amounted to 3.5 billion euros (+1.9% compared to the previous year's figure).
"In the third quarter, we increased our profit compared to both the same period last year and the first two quarters of 2024," noted Continental CEO Nikolai Setzer. "This is largely due to the adjustment of prices and disciplined cost management."
In July-September 2024, Continental's tire division increased not only its turnover but also its profitability according to adjusted EBIT, which grew from 13.3 to 14.5% due to improved demand in Europe, where consumers, in particular, were buying winter tires in advance.
It was recently announced that due to good growth opportunities in the Asia-Pacific region, Continental will increase the capacity of its plant in Rayong (Thailand) by another 3 million tires and invest 300 million euros in expanding production. The enterprise in Thailand produces, among other things, tires adapted for use on electric cars, and in 2023, Continental supplied tires to five leading global electric vehicle manufacturers in the APR. In addition, the Rayong plant is one of the largest Continental tire production sites in the world for motorcycles.
In recent weeks, Continental tires have performed well in a number of independent tests, and, for example, the winter Continental WinterContact TS 870 received good ratings in tests by Auto Bild, ADAC, and Auto Express, while the all-season Continental AllSeasonContact 2 was highly praised by experts from Auto Bild, Sport Auto, and Auto Zeitung. "This season's tests have repeatedly confirmed the high quality and effectiveness of Continental tires," the company noted.
Following the third quarter, Continental refined its forecast for the year, and the expected revenue was changed from 40-42.5 to 42 billion euros.