Latest news with #ContiTech
Yahoo
06-05-2025
- Automotive
- Yahoo
German car parts supplier Continental back in black in first quarter
Nikolai Setzer, Chairman of the Executive Board of Continental AG, speaks at the company's Annual Shareholders' Meeting at the Hannover Congress Centrum (HCC). Moritz Frankenberg/dpa German automotive parts maker Continental AG reported on Tuesday that it has returned to profit in the first quarter following a loss in the same quarter of the previous year, and this was in spite of a slight drop in sales. Continental updated its fiscal 2025 outlook to reflect the planned automotive group spin-off, which has been reported separately as a discontinued operation. In the first quarter, net income attributable to shareholders of the parent was €68 million ($77 million), compared to a loss of €53 million a year ago. Earnings per share were €0.34, compared to a loss of €0.27 last year. Adjusted earnings before interest and taxes (EBIT) were €639 million, with a margin of 6.6%. The company noted that the planned automotive spin-off has led to the mandatory application of international financial reporting standards (IFRS) number 5. Without the application of IFRS 5, adjusted EBIT would have been €586 million, with a 6% margin. In the prior year, adjusted EBIT was €201 million, with a margin of 2.1%. The company noted that the automotive group sector achieved significantly higher earnings year-on-year, despite declining automotive production in Europe and North America. Tyres also recorded a strong improvement in earnings in the first quarter. Consolidated sales were €9.707 billion, down 0.8% from €9.788 billion a year ago. In the first quarter of 2025, the global production of passenger cars and light commercial vehicles was slightly higher year-on-year, improving by around 1% to 21.7 million units. Continental chief executive Nikolai Setzer said, "We made a solid start to the year, significantly improving our earnings for the Continental group in the first quarter compared with 2024, and are confident that we will achieve our annual targets." Looking ahead, for fiscal 2025, for the continuing operations of tyres and ContiTech, Continental expects consolidated sales in the range of around €19.5 billion to €21 billion and an adjusted EBIT margin of around 10.5% to 11.5%. For the discontinued operations of the automotive group sector, Continental expects sales of around €18 billion to €20 billion and an adjusted EBIT margin of around 2.5% to 4%, operationally unchanged and excluding the effects of IFRS 5. The forecasts for sales and adjusted EBIT margin for the individual automotive, tyres and ContiTech group sectors remain unchanged. The company added that the outlook for the year does not take into account any potential impact resulting from possible future trade restrictions.
Yahoo
06-05-2025
- Automotive
- Yahoo
Continental reports strong Q1 profit on cost cuts but tariff uncertainty looms
By Rachel More BERLIN (Reuters) -German car parts maker Continental reported stronger-than-expected earnings growth on Tuesday in part from cost-cutting efforts, although it warned increasing U.S. trade restrictions from higher tariffs pose economic risks. "We made a solid start to the year," CEO Nikolai Setzer said in a statement on its first-quarter results. However, the statement also highlighted the threat of increasing trade hurdles, which were not factored into the group's full-year guidance. Continental is in the process of splitting off two of its three businesses, seeking a leaner form as a pure-play tyre maker that it hopes will be better positioned in a volatile market rattled by tariffs imposed by the U.S. The company adapted its 2025 outlook to omit the auto division ahead of a spin-off of the business expected this year, forecasting lower sales but increased profitability. "Geopolitical tensions and the potential impact of trade restrictions are causing a high degree of uncertainty about global economic development in the current fiscal year," the company said. RESTRUCTURING SAVINGS The group comprising the tyres and ContiTech businesses expects sales in a range of around 19.5 billion to 21.0 billion euros ($22 billion to $23.8 billion) and an adjusted profit margin of around 10.5% to 11.5%. Germany's other major auto parts suppliers, Bosch and ZF, are also undergoing radical restructuring as the sector grapples with a drop in car production and high costs, now compounded by the trade conflict affecting exports to the United States. Last month, Continental revealed plans to turn its ContiTech rubber and plastics division into an independent entity, targeting a likely sale, while its automotive unit is expected to be spun off this year and subsequently listed on the Frankfurt stock exchange. The company reported adjusted earnings before interest and taxes (EBIT) of 586 million euros in the first quarter, compared to 201 million euros a year earlier and beating a forecast of 485 million euros, according to a company-provided poll of analysts. Continental's adjusted EBIT margin in the first three months of 2025 was 6.0% versus a forecast 5.1%. "The quarterly results reflect our focus on improving our financial position – and show that our efficiency measures are paying off," said Continental CFO Olaf Schick. ($1 = 0.8836 euros) Sign in to access your portfolio
Yahoo
09-04-2025
- Automotive
- Yahoo
Continental to spin off ContiTech, focus on tyre business
Continental, a German automotive parts manufacturing company, plans to restructure its operations by making its ContiTech rubber and plastics division an independent entity. This move is part of a broader strategy to refocus the company as a dedicated tyre manufacturer following the proposed separation of its automotive segment. Continental said its executive board is currently in the preparatory phase, evaluating potential transaction forms for ContiTech's independence and establishing a timeline for the process. A sale of ContiTech is considered the most probable outcome, expected to occur after the spin-off of the Automotive group sector and the sale of the Original Equipment Solutions (OESL) business area. If approved, ContiTech could gain its independence by 2026, the company said. ContiTech is a specialist in material solutions for industrial sectors such as off-highway mobility, mining, construction, home and energy management, and automotive. The company and generated €6.4bn ($7bn) in sales in 2024 and it currently employs approximately 39,000 people. A carve-out of Continental's automotive rubber products division, OESL, is already underway. The OESL unit, employing around 16,000 people in 16 countries, is seeking potential buyers and partners. The restructuring initiative is part of Continental's plan to establish its three group sectors—Tires, ContiTech, and Automotive—as standalone companies. Following these changes, Continental AG will operate exclusively as a global tyre company. Continental CEO Nikolai Setzer said: 'Over the past 30 years in particular, Continental has used targeted acquisitions and organic growth to build up three strong group sectors in their respective industries. These are now ready for independence. 'Today's highly dynamic markets also call for focused, agile and decisive action. Now is therefore the right time to initiate the most far-reaching realignment in the company's history. We are creating three strong, independent champions that will achieve their full growth and value creation potential as independent companies.' The company's tyre business generated €13.9bn in revenue in 2024 and employs more than 57,000 people worldwide. As a result of the changes, the composition of Continental's executive board will also be adjusted. Effective 1 July 2025, Ulrike Hintze will be appointed as director of labour relations and executive board member for human resource (HR) at Continental. In addition to her new responsibilities, Hintze will continue to lead the HR function within the Tires group sector. She succeeds Dr Ariane Reinhart, who will step down from her role as executive board member for HR and sustainability and director of labour relations on 30 June 2025. Responsibility for sustainability will be taken over by Setzer, who will now oversee this area alongside his current roles in IT and Communications. "Continental to spin off ContiTech, focus on tyre business" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
08-04-2025
- Automotive
- Yahoo
Continental AG says it will separate rubber unit, likely put it up for sale
By Ludwig Burger (Reuters) - Germany's Continental AG on Tuesday said it would turn its ContiTech rubber and plastics division into an independent entity that would likely be put up for sale. "A sale of the group sector is seen as the most probable strategic option," it said in a statement. The separation is to be implemented after the spin-off of its automotive unit and the sale of its Original Equipment Solutions business, the group said. ContiTech would likely become independent in 2026, it added. The move intensifies a process of splitting off businesses at the German maker of tyres and car parts. Its supervisory board last month formally approved plans for spinning off the group's automotive business, which will have cash funds of 1.5 billion euros ($1.64 billion) before the process is completed. Continental plans a spin-off and subsequent 100% public listing of its automotive unit on the Frankfurt stock exchange, during a tough period for the German car parts and tire maker and Europe's auto industry as a whole.
Reuters
08-04-2025
- Automotive
- Reuters
Continental AG says it will separate rubber unit, likely put it up for sale
April 8 (Reuters) - Germany's Continental AG ( opens new tab on Tuesday said it would turn its ContiTech rubber and plastics division into an independent entity that would likely be put up for sale. "A sale of the group sector is seen as the most probable strategic option," it said in a statement. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. The separation is to be implemented after the spin-off of its automotive unit and the sale of its Original Equipment Solutions business, the group said. ContiTech would likely become independent in 2026, it added. The move intensifies a process of splitting off businesses at the German maker of tyres and car parts. Its supervisory board last month formally approved plans for spinning off the group's automotive business, which will have cash funds of 1.5 billion euros ($1.64 billion) before the process is completed. Continental plans a spin-off and subsequent 100% public listing of its automotive unit on the Frankfurt stock exchange, during a tough period for the German car parts and tire maker and Europe's auto industry as a whole.
