Continental has downgraded its forecast for the year

In the second quarter of 2024, Continental's consolidated sales amounted to €10 billion, down 4.1% compared to the same period last year. At the same time, adjusted earnings before interest and taxes (EBIT) grew by 40.6% to €704 million, and net profit increased by 46.2% to €305 million.

According to Continental's CFO, Wolfgang Schäfer, "the measures we have taken to reduce costs are beginning to bear fruit, which has helped us significantly improve our results compared to the first quarter." "We will not let up on our efforts in this area in the second half of the year and will continue to strive to achieve the financial goals we have set for ourselves," he added.

Continental's Tires division reported a 1.7% decline in sales to €4.3 billion in the second quarter of 2024, while the adjusted EBIT margin increased from 13.7% a year earlier to 14.7%. The growth in profitability is primarily attributed to the increase in demand on the secondary market, particularly in Europe.

Following the results of the first half of the year, Continental has revised its sales forecast for 2024 downward from €41-44 billion to €40-42.5 billion, while the expected adjusted EBIT margin remains unchanged at 6-7%. The forecast for the tire business has been reduced from €14-15 billion to €13.5-14.5 billion.

In the first half of the year, Continental implemented a number of projects, including the launch of carbon-neutral tire production at its plant in Lousado, Portugal. This was made possible by the generation of steam using an electric boiler, with energy generated by solar panels. The Lousado plant is one of Continental's largest production facilities, with an annual capacity of 18 million tires. The company intends to make all its tire plants carbon-neutral by 2024 at the latest.

On August 6, it was announced that Continental plans to spin off its Automotive division (which produces brake systems, displays, etc.) into an independent company.