Conti rubber units post higher sales but pressure on margins

Hanover, Germany - Continental AG has posted preliminary financial data for the first quarter of 2022 showing group consolidated sales up 8.1% year-on-year to €9.3 billion.  

Before changes in the scope of consolidation and exchange- rate effects, sales increased year-on-year by 5.3%, the German group reported 21 April.

Earnings (adjusted EBIT) margin was recorded at 4.7%, well down on the 8.5% level achieved in the first quarter of 2021, the group's preliminary figures also show.  

First quarter sales at Continental’s Tires segment came in 22% higher year-on-year at €3.3 billion, while an adjusted EBIT margin of 17.1% surpassed the 16.6% recorded a year ago.

Before changes in the scope of consolidation and exchange-rate effects, sales increased year-on-year by 17.4%, Continental noted.

Margins at the Tires unit benefited from a special effect of around €200 million, relating to inventory valuations as well as procurement and manufacturing costs.

At €1.6 billion, sales at ContiTech increased 6.7%, though the adjusted EBIT margin of 5.4% was almost half the 10.2% achieved in the first quarter of last year.

Before changes in the scope of consolidation and exchange-rate effects, sales at ContiTech increased 3.6% year-on-year, the group noted.

Continental will issue its quarterly statement for the first quarter of 2022 on 11 May.