Continental is optimistic for the second half of the year despite a turbulent market environment on account of strong auto order intake. The sales for Q2CY2022 came in at €9.4 billion (Q2 2021: €8.4 billion, +13 percent) on account of the same.
However, the current turbulence has impacted the company’s second quarter with Q2CY2022 net income coming in negative -€251 million (Q2 2021: €545 million for continuing and discontinued operations).
Katja Dürrfeld, CFO of Continental added that, “The current headwind is rather like a hurricane and will not subside any time soon. Given this environment, we have performed well and become more resilient.”
Continental CEO Nikolai Setzer said, “The market environment remained extremely challenging for automotive suppliers in the second quarter. At the same time, we are making significant progress in the development and marketing of our technologies, with a strong order intake in Automotive. This shows that we have the right strategy and positioning.”
In fact, even the Continental Mobility Study published in July 2022 indicated that connectivity, automation, and the user experience play a decisive role for the majority of people (in China, Germany, France, Japan, Norway and the USA) when purchasing a new vehicle. The car as well as the technology built into it must also remain intuitive to operate, safe and affordable.
CFO Dürrfeld added that, “We are optimistic for the second half of the year. We anticipate a rise in automotive production, and our measures to improve earnings are also taking effect. We are therefore maintaining our outlook for the current fiscal year.”
As a result of continued high demand for its products and positive effects from various measures, the Continental Automotive segment significantly outperformed the market. Its Q2CY2022 sales increased by 13.7 percent to €4.3 billion (Q2CY2021: €3.8 billion).
Continental Tires too closed the second quarter successfully, recording increased sales in the car tyres and commercial-vehicle tyres replacement business compared with the previous year. Particularly in the EV segment, the company received approvals for more than 300 different vehicle models already.