Continental’s Automotive group sector has taken the first steps toward its planned independence in order to continue to play a key role in shaping the technological transformation in the highly dynamic automotive industry. The carve-out of the User Experience business area for vehicle display solutions announced in December 2023 will be suspended for the foreseeable future. The business area will therefore remain part of Automotive. Pavel Prouza, who was previously responsible for a product segment, will take over the management of User Experience.
Continental ended the second quarter of 2024 in line with its expectations. As announced, the company significantly increased earnings in all three group sectors compared with the first quarter of this year. The technology company also posted much stronger earnings year-on-year. In the Automotive group sector, price adjustments and initial savings from cost-cutting measures had a particularly positive effect. The Tires group sector achieved good results thanks mainly to the strong tire-replacement business, especially in Europe.
At its meeting today, the Supervisory Board of Continental AG appointed Olaf Schick (52) as the company’s new chief financial officer (CFO) effective July 1. In addition to Group Finance and Controlling, Schick will remain responsible for Group Law and Intellectual Property, Group Compliance, Group Internal Audit, Group Quality Management and Group Risks and Controls, all of which are currently part of the Integrity and Law function. Continental CEO Nikolai Setzer will take charge of Group Information Technology (IT), which is currently part of the Finance function.
The Continental tire plant in Hefei, China, recently became the company’s latest production site to receive the International Sustainability and Carbon Certification (ISCC) PLUS sustainability certification. The globally recognized standard certifies that Continental meets specific sustainability standards. It also confirms the transparency of the traceability of the raw materials used in the production process. Certification of the raw materials enables Continental to ensure the end-to-end traceability of the materials from sustainable sources.
After a weak first quarter in 2024, Continental expects earnings to improve as the year progresses – particularly in the second half of the year. Based on this, the DAX company is confirming its full-year outlook, as already announced together with the publication of its key figures for the first quarter on April 16, 2024. Overall, Continental still anticipates consolidated sales for 2024 of around €41.0 billion to €44.0 billion and an adjusted EBIT margin of around 6.0 to 7.0 percent.
We’re on the move. And we’re moving the world of mobility forward.” During his speech at today’s Annual Shareholders’ Meeting, Continental CEO Nikolai Setzer emphasized the technology company’s dynamic role. The meeting was held in person for the first time in five years and was also streamed live.
The public prosecutor’s office in Hanover today issued a fine totaling €100 million against Continental AG and individual subsidiaries because of a negligent breach of supervisory duties in connection with the supply of engine control units and engine control unit software (including for the VW EA189 1.6l). The fine consists of a penalty portion totaling €5 million and a levy of economic benefits totaling €95 million. The proceedings relate to the business activities of Continental’s former powertrain division, which was spun off to form Vitesco Technologies in 2021.
2024 marks a significant milestone for Continental's tire manufacturing operations in the United States. Three key plants celebrate their anniversaries: 5 years in Clinton, Mississippi, 10 years in Sumter, South Carolina, and 50 years in Mount Vernon, Illinois. With an annual production capacity of more than 16 million tires and a team of more than 6,700 local manufacturing employees, Continental is amongst the top tire manufacturers in the U.S.. In the last decade alone, the company has invested more than $1.5 billion USD in its American tire manufacturing operations.
Yesterday’s individual time trial in Nice brought the curtain down on the Tour de France 2024.