250 million euros in the red
“Hurricane” pushes Continental deep into the loss zone
08/09/2022, 09:35 am
High energy prices and expensive raw materials hit the automotive supplier Continental hard. The DAX company slips deep into the red. CFO Dürrfeld speaks of a “hurricane-like” headwind, but is still optimistic about the future.
The automotive supplier and tire manufacturer Continental slipped into the red in the second quarter due to increased costs and depreciation. The bottom line was a minus of 250.7 million euros after a profit of 545.3 million euros a year ago, as the DAX group announced. The Hanoverians had already announced a high need for depreciation with their preliminary figures almost three weeks ago.
CFO Katja Dürrfeld spoke of a “hurricane-like” current headwind. She cited the price increases for raw materials, energy and logistics triggered by the Ukraine war as well as the lack of electronic components and the corona lockdowns in China as the reason for the net loss. In addition, the automotive supplier was burdened by numerous special effects. Adjusted for special effects, earnings before interest and taxes fell by around a fifth to EUR 410.5 million
Book value write-downs in the automotive supply division due to increased interest burdened with 370 million euros. In addition, there was a value adjustment for the business in Russia due to additional sanctions in the amount of 75 million euros and conversion costs in the plastics technology division Contitech over 63 million euros.
On the other hand, the group’s sales from continuing operations in the months of April to June, as already known, rose by 13 percent to 9.4 billion euros. And Continental is also optimistic about the future. “We are confident for the second half of the year,” said CFO Dürrfeld, thereby confirming the outlook for the year as a whole. Group CEO Nikolai Setzer referred to a high order intake in the automotive supplier division of over six billion euros.