Continental AG Reports Strong Financial Performance in 2023, Sets Positive Outlook for 2024

Continental AG announced a significant improvement in its financial results for the fiscal year 2023, achieving increased earnings and setting optimistic targets for further improvement in 2024. The Germany-based technology company reported consolidated sales of €41.4 billion, marking a 5.1% increase over the previous year. Adjusted EBIT rose by an impressive 31.6% to €2.5 billion, with the adjusted EBIT margin reaching 6.1%. Net income saw a substantial growth of 1,635%, amounting to €1.2 billion, while adjusted free cash flow soared by 547% to €1.3 billion.

CEO Nikolai Setzer attributed these achievements to the dedicated efforts of Continental's approximately 200,000 employees despite challenging conditions, including geopolitical uncertainties and inflationary pressures. The company's Automotive, Tires, and ContiTech divisions all contributed to the strong performance, with improvements noted in the adjusted EBIT margins across these sectors.

Looking ahead to 2024, Continental expects consolidated sales to be in the range of €41.0 billion to €44.0 billion and an adjusted EBIT margin of between 6.0% and 7.0%. The company's strategy focuses on increasing value creation and targeting above-market growth, particularly in the Automotive group sector, where further margin improvements are anticipated.

The board will propose a dividend of €2.20 per share, reflecting a €0.70 increase from the previous year and aligning with the updated distribution strategy. Reflecting on the robust financial performance and future prospects, CFO Katja Garcia Vila expressed confidence in the company's financial strength and strategic directions for enhancing shareholder value and achieving mid-term targets.