Continental's profit exceeded forecasts

Continental's profit in the second quarter exceeded analysts' forecasts, as steady demand for premium tyres and lower raw material costs helped offset declining sales volumes, partly due to weak global automotive production, Reuters reports.

The company maintained its 2026 outlook, stating that favorable raw material market conditions in the first half of the year, particularly from January to March, are unlikely to persist in the second half.

Oil-based raw materials are used in producing synthetic rubber, which is essential for tyre manufacturing, and Continental previously warned that a significant long-term rise in oil prices would increase the company's costs. The oil sector situation is expected to raise Continental's expenses by several hundred million euros in the second half of the year, compared to an equivalent positive effect seen in the first half, company CFO Roland Villzbacher said.

Continental is currently completing a major strategic business reorganization, selling all non-tyre-related assets, and in July announced an agreement to sell its ContiTech division.

Tyre division revenue at Continental reached 3.3 billion euros in the second quarter, nearly unchanged compared to the same period last year. Although unit sales declined by 2.3%, adjusted operating margin rose to 15.3%.

Adjusted EBIT profit totaled 570 million euros, surpassing expectations. Taking the ContiTech sale into account, the company expects annual revenue of 13.2–14.2 billion euros, with a projected operating margin of 12–13.5%.