Conti predicts 2025 growth for Tires and ContiTech units

Hanover, Germany – Continental AG’s financial report for the year ending 31 December 2024 revealed a strong performance by its tires division during the period.

Sales for the Continental Tires sector were slightly down year-on-year to €13.9 billion from 2023’s €14.0 billion – a drop of -0.7%.

But a growing share of the premium tires market and good winter business in Europe resulted in an adjusted EBIT margin of 13.7%, slightly up on the 13.5% reported in 2023.

The group’s ContiTech sector was on target for the year, thanks to a strongly-performing fourth quarter but saw sales down 6.7% on the prior-year level, at €6.4 billion.

Adjusted EBIT margin, which was reported at 6.7% in 2023, also reduced to 6.2% in 2024, with the fall attributed to a “weak automotive and industrial environment.”

Speaking on the group’s 4 March fiscal webcast, chief financial officer Olaf Schick predicted Continental Tires to extend a strong last quarter performance into 2025.

“For tires, we expect sales of around €13.5 billion to €14.5 billion and an adjusted EBIT margin of around 13.3 to 14.3%,” he commented.

Schick added that expectations for ContiTech were for sales within the margin of “around €6.3 billion to €6.8 billion” with adjusted EBIT margin between 6.0 to 7.0%.

CEO Nikolai Setzer vowed to strengthen the independence of the Continental Tires and ContiTech arms with the aim of an “upward trajectory” and improved earnings.

He added that Continental will invest €300 million to expand its Rayong, Thailand tire plant to capitalise on growth markets including electric vehicles (EVs).

Of the 10 highest volume EV manufacturers in the Asia-Pacific region, Continental currently supplies nine with OE tires, Setzer pointed out.