Continental cuts 2024 sales outlook but quarterly profit up

Continental AG revised its revenue forecast downward on Monday but reported an increase in third-quarter profits.

Continental cuts 2024 sales outlook but quarterly profit up

The Hanover, Germany-based automotive parts manufacturer announced that net income for the third quarter of 2024 rose 61% to €497 million, up from €308 million the previous year. However, revenue declined by 4.0%, falling to €9.83 billion from €10.24 billion. The Automotive division, which produces technology for braking, chassis, and motion control systems, benefited from profit-boosting measures, according to Continental. The company also noted "encouraging early sales" of its winter tyres. However, earnings in the ContiTech division were negatively impacted by continued weak industrial performance in Europe and North America.

Revenue forecast cut

Continental has updated its annual revenue forecast, now expecting sales between €39.5 billion and €42.0 billion, down from the previous range of €40.0 billion to €42.5 billion. The company generated €41.42 billion in revenue in 2023. "For 2024 as a whole, Continental anticipates a year-on-year decline in the production of passenger cars and light commercial vehicles. Demand in the tire-replacement business is expected to pick up slightly in the second half of the year compared to the first six months, while the industrial business worldwide is likely to remain weak," the company said.