Conti posts sales gains for tire and rubber component units
19 Jan 2023
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But lower-than-expected earnings at ContiTech on increased production costs, Covid restrictions in China
Hanover, Germany – Continental Group’s rubber divisions have seen annual sales increase in the year 2022, but pressure on margins continued for the German group’s industrial arm ContiTech.
The Tires Group reported annual sales of €14.0 billion for 2022, up 18.6% compared to last year and well within Continental's forecast range of €13.8 billion to €14.2 billion.
Adjusted earnings (EBIT) margin is expected to come in around 13.1% for 2022 as a whole, slightly above the range of 12.0% to 13.0% previously predicted for the tires unit.
Meanwhile, sales at rubber-based parts and systems maker ContiTech increased by nearly 12% year-on-year, Continental said in a 17 Jan preliminary estimate of the group's full-year performance.
Revenues at ContiTech are expected to come in at €6.6 billion for last year, just above the parent group's previous estimate of €6.3 billion to €6.5 billion.
The division, however, missed its adjusted EBIT margin estimate of around 6% to 7%, with the figure now expected to come in at 4.7%.
Continental linked the lower-than-expected earnings to increased production costs, an unfavourable product mix and pandemic-related business restrictions in China.
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