Continental Announces First Quarter (Q1) 2022 Results

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Continental Announces First Quarter (Q1) 2022 Results

The third-largest tyre maker in the world Continental yesterday on May 11 announced its first-quarter 2022 results. Continental performed well in the first quarter of 2022 despite an increasingly turbulent market environment, reporting a strong tyre business. Continental reported consolidated sales as EURO 9.3 billion, up by 8.2% as compared to EURO 8.6 billion in the same period last year.

“The past quarter was overshadowed by the war against Ukraine and its drastic effects on already high energy prices and strained logistics chains and commodity markets. In addition, measures to contain the coronavirus pandemic, particularly in China, hurt economic development. Given the multiple challenges, we took various steps to minimize the impact on earnings,” said Nikolai Setzer, CEO of Continental,

on Wednesday in Hanover, adding: “Price increases in procurement and logistics affected us significantly in the first quarter. Despite this considerable headwind, we achieved a good result in the tire business. For Automotive, we are confident that the measures taken will result in improved earnings over the year.”

In the tire segment, Continental achieved €3295.2 million and as a whole continental group, the company achieved €9278.3 million.

The automotive division reported an adjusted loss before interest and a tax of €165 million.

First-quarter net income was at €245 million ($258.35 million), down from €448 million in the same period last year.  Adjusted free cash flow was -€174 million (Q1 2021: €637.6 million for continuing and discontinued operations).

“Adjusted free cash flow in the first quarter of this year was negative due primarily to higher procurement costs and inventory buildup. For the year as a whole, we anticipate an adjusted free cash flow of around €0.6 billion to €1.0 billion,” explained Katja Dürrfeld, CFO of Continental.

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