Continental Reports Positive Results for 2021

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Source: Continental announcement

HANOVER, Germany — Within a persistently turbulent market environment, Continental performed well in operative terms in 2021 and achieved a positive net income.

The coronavirus pandemic, low automotive production due to electronic component shortages as well as significant cost increases in the areas of procurement and logistics had an especially significant impact on the sales and earnings of the DAX-listed company. Nonetheless, Continental achieved its adjusted annual targets.

With its realigned strategy and corresponding market-oriented structure, the technology company also strategically set its course for the future.

“The past fiscal year was again a very trying one for us. Despite the many challenges, we performed well operationally in 2021 and achieved a positive net income,” said Nikolai Setzer, CEO of Continental, at the annual financial press conference on Wednesday in Hanover. He added: “My thanks go out in particular to our more than 190,000 employees worldwide. They have pulled together as a team to overcome the numerous restrictions and obstacles confronting them.”

Setzer also made reference to the company’s strong technology position:

“Safe, autonomous, connected and sustainable driving provide the new horse power for the mobility of the future,” he said. “We are committed to developing these areas. This is where our strength lies – from brake systems, vehicle surroundings sensors, high-performance computers and sustainable tires, through to hoses for the thermal management of electric vehicles.

“We are well positioned thanks to our focused portfolio and our comprehensive software and digitalization expertise. Under a single roof, we are jointly gathering momentum for our strategic realignment.”

Consolidated sales up by 6.0 percent in 2021

According to preliminary figures, the DAX company’s consolidated sales totaled €33.8 billion in the past fiscal year (2020: €31.9 billion, +6.0 percent). Unless indicated otherwise, the respective effects of Vitesco Technologies (discontinued operations) until the spin-off in September 2021 are not taken into account. Before changes in the scope of consolidation and exchange rate effects, sales rose by 7.4 percent. In a persistently challenging market environment, the company achieved an adjusted EBIT of €1.9 billion (2020: €1.4 billion, +37.7 percent), corresponding to an adjusted EBIT margin of 5.6 percent (2020: 4.4 percent).

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“While the low production level worldwide has had a negative impact, particularly on our automotive business, our Tires and ContiTech sectors achieved a good result despite massive cost increases in the areas of procurement and logistics,” said Setzer.

Following a negative net income in the previous year resulting from incurred expenses and impairments on property, plant and equipment, Continental achieved a net income of €1.5 billion in 2021 (2020: -€962 million). The free cash flow before acquisitions, divestments and carve-out effects for continuing and discontinued operations amounted to €1.2 billion (2020: €805 million).

To view the entire announcement, click HERE.

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