Conti reports diverging results for Tires and ContiTech units

Hanover, Germany – Continental AG's rubber operations – Tires and ContiTech – have delivered diverging performances in 2023, annual results posted by the German group show.

The Tires operations reported a 2.2% year-on-year decline in earnings (EBITDA) to €2.58 billion, on 0.3% lower sales of €13.9 billion, Continental announced 7 March.

At 13.5%, adjusted EBIT margin surpassed the 13.1% reported last year, reflecting “the continued high share of premium tires and a strong end-of-year business in Europe.”

The group also noted its “strong position” in the OE tire segment for EVs, stating: “the 10 highest-volume manufacturers of electric vehicles currently all place their trust in tires from Continental.”

ContiTech, which represents Continental’s materials and industrial products manufacturing operations, reported a much stronger development for 2023.

Despite "a weak industrial environment”, ContiTech achieved a 3.7% year-on-year increase in sales to €6.8 billion, while earnings grew 42.5% to €693 million.

Consequently, adjusted EBIT margin at the industrial products maker reached 6.7%, compared to 4.7% in 2022.

The German group linked the improvement to a strategic realignment at ContiTech launched in May last year.

The restructuring, it said, is enhancing the group sector’s "impact and efficiency": improving customer- and market-proximity and further expanding its industrial business.

Alongside the restructure, ContiTech also strengthened its industrial business via company takeovers, fully acquiring the printing technology business of Trelleborg, for example.

“This step expanded the technology company’s range of surface solutions in the field of printing technology at the same time as boosting its business with industrial clients,” Continental said.

Another key acquisition was the purchase of conveyor and maintenance company Vertech AB, which is active in the mining industry in Sweden and Norway.

The acquisition, Continental said, “marks an important next step” in offering industrial customers in Sweden and northern European “a comprehensive package of products, services and solutions.”