German car-parts supplier Continental reported lower-than-expected earnings for the second quarter of this year and revised its outlook for full-year sales. Net profit for the quarter stood at €208.6 million, a significant improvement from a net loss of €250.7 million in the same period last year. Adjusted earnings before interest and taxes came in at €497 million, up from €401 million, with a corresponding margin increase to 4.8% from 4.3% in the prior year.
Continental’s sales surged to €10.4 billion, surpassing last year’s figure of €9.4 billion. However, this fell short of analysts’ expectations of €10.4 billion. Chief Executive Officer Nikolai Setzer commented on the company’s performance, stating that the Tires group sector achieved good earnings during the second quarter, while the Automotive sector underperformed. Setzer acknowledged the need to make significant progress in the second half of the year to compensate for the shortfall.
Continental attributed the disappointing automotive business results to currency effects and ongoing costs for special freight. As a result, the company lowered its sales expectations for both the group as a whole and the tires division for 2023. Sales for the group are now projected to reach between €41.5 billion and €44.5 billion, down from the previous estimate of €42 billion to €45 billion. The tires division is expected to generate sales of approximately €14 billion to €15 billion, compared to the previous forecast of €14.5 billion to €15.5 billion.