- Consolidated sales of €41.4 billion (2022: €39.4 billion, +5.1 percent)
- Adjusted EBIT of €2.5 billion (2022: €1.9 billion, +31.6 percent)
- Adjusted EBIT margin of 6.1 percent (2022: 4.9 percent)
- Net income of €1.2 billion (2022: €67 million, +1,635 percent)
- Adjusted free cash flow of €1.3 billion (2022: €200 million, +547 percent)
- CEO Nikolai Setzer: “We achieved our goals for 2023 and made improvements toward
achieving our mid-term targets, despite the challenging conditions. For this, my special
thanks go to our around 200,000 employees worldwide” - CFO Katja Garcia Vila: “We significantly increased our adjusted free cash flow thanks to
an improvement in operating earnings and a reduction in inventories and receivables” - Automotive improves: adjusted EBIT margin of 1.9 percent; order intake of around
€27.1 billion - Tires delivers stable profitability: adjusted EBIT margin of 13.5 percent
- ContiTech stronger: adjusted EBIT margin of 6.7 percent
- Expectations for fiscal 2024: consolidated sales of around €41.0 billion to €44.0 billion;
adjusted EBIT margin of around 6.0 to 7.0 percent - Dividend proposal of €2.20 per share
Hanover, March 7, 2024. Continental achieved its financial targets in the past fiscal year, taking the
DAX company a step closer to its mid-term targets as it continues to defy the challenging
conditions. The geopolitical situation, additional inflation-related costs of around €1.4 billion,
exchange-rate effects and high costs for special freight all had a considerable impact on
performance. Continental also presented its strategy for increasing value creation and achieving its
mid-term targets at its Capital Market Day in December 2023.
For the current fiscal year, the technology company is targeting an increase in sales and earnings
(consolidated sales: around €41.0 billion to €44.0 billion, adjusted EBIT margin: around
6.0 to 7.0 percent). Continental expects the margin to improve further, particularly in the
Automotive group sector, thanks mainly to the cost-cutting measures, price adjustments and
efficiency improvements adopted last year. The goal is also to achieve above-market growth.
“The past fiscal year posed major challenges for us with geopolitical uncertainties, persistent
strains on the supply of semiconductors, and inflation,” said Continental CEO Nikolai Setzer at the
annual press conference in Hanover on Thursday, adding: “We achieved our goals for 2023 and
made improvements toward achieving our mid-term targets, despite the challenging conditions. For
this, my special thanks go to our around 200,000 employees worldwide. I’m proud of our team,
because together we made substantial progress. In 2024, we will once again tackle the challenges
facing us head on and pursue our goals for the year with determination.”
Adjusted operating result increases by 31.6 percent in 2023
In the past fiscal year, Continental achieved consolidated sales of €41.4 billion (2022:
€39.4 billion, +5.1 percent). Its adjusted EBIT was €2.5 billion (2022: €1.9 billion, +31.6 percent),
corresponding to an adjusted EBIT margin of 6.1 percent (2022: 4.9 percent). All three group
sectors contributed to the improved adjusted EBIT margin.
Net income increased to €1.2 billion in 2023 (2022: €67 million, +1,635 percent). Adjusted free
cash flow was €1.3 billion (2022: €200 million, +547 percent).
“Thanks to an improvement in operating earnings and a reduction in inventories and receivables,
we significantly increased our adjusted free cash flow. We therefore slightly exceeded our cash
flow target, which speaks to our financial strength,” said Continental CFO Katja Garcia Vila.
Dividend proposal of €2.20 per share
Based on the updated distribution strategy of 20 to 40 percent of net income, the Continental
Executive Board will propose a €0.70 increase in the dividend to €2.20 per share for the past fiscal
year. At around 38 percent, the distribution to shareholders is at the upper end of the defined
range and would amount to around €440 million in total.
Market outlook and forecast for fiscal 2024
In 2024, Continental expects the global production of passenger cars and light commercial vehicles
to change by -1 to 1 percent. Last year, this increased by almost 10 percent compared with 2022 to
more than 90 million vehicles. For the global tire-replacement business, the technology company
expects sales volumes to develop by 0 to 3 percent.
Higher costs for wages and salaries – expected to amount to around €500 million – will weigh
heavily on the earnings position in fiscal 2024, with around half of these costs attributable to the
Automotive group sector.
Based on these assumptions and given the exchange rates at the beginning of the fiscal year,
Continental 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.
Continental expects the Automotive group sector to generate sales of around €20.0 billion to
€22.0 billion and an adjusted EBIT margin of around 3.0 to 4.0 percent.
For the Tires group sector, Continental forecasts sales of around €14.0 billion to €15.0 billion and
an adjusted EBIT margin of around 13.0 to 14.0 percent.
Continental anticipates sales in the ContiTech group sector of around €6.6 billion to €7.0 billion
and an adjusted EBIT margin of around 6.5 to 7.5 percent.
Capital expenditure before financial investments is forecast to be around 6.0 to 7.0 percent of
sales.
Adjusted free cash flow is expected to be around €0.7 billion to €1.1 billion.
“In the current year, we are targeting an increase in sales and in the adjusted EBIT margin for the
Continental Group. Despite high special expenses, we expect the corridor for adjusted free cash
flow to be only slightly below that of the previous year,” said Garcia Vila.
For one thing, payments for the buyback of shares in ContiTech AG will impact free cash flow by
around €500 million in 2024. The background in this regard is that in order to strengthen
Continental’s liquidity during the financial market crisis, the company sold 24.9 percent of its
shares in ContiTech AG to Continental Pension Trust e. V. in 2009. The shares were then bought
back in order to restore the original ownership structure. Continental AG therefore once again fully
owns ContiTech AG, which now operates under the name ContiTech Deutschland GmbH.
Furthermore, Continental anticipates additional special expenses of around €500 million. These
relate to the carve-out of the Original Equipment Solutions (ContiTech) and User Experience
(Automotive) business areas, as well as the measures already announced in the Automotive group
sector to strengthen competitiveness. In total, it therefore expects special expenses of around
€1 billion, which will impact adjusted free cash flow in fiscal 2024.
Automotive improves: adjusted EBIT margin of 1.9 percent; order intake of €27.1 billion
In the Automotive group sector, sales increased by 10.8 percent to €20.3 billion (2022:
€18.3 billion). Automotive significantly increased its adjusted EBIT margin compared with the
previous year to 1.9 percent (2022: -0.3 percent). The improvement in earnings was attributable in
particular to higher production efficiency thanks to a more stable material supply, strict cost
discipline and a lower special freight volume.
In addition, Continental further increased order intake in the Automotive group sector. The
technology company generated orders worth around €27.1 billion last year, confirming its strong
position in terms of purchase-relevant future technologies. Year-on-year, the order volume
increased by around 16 percent (2022: more than €23 billion).
The order from the exclusive partnership with Aurora contributed to this. Together, Continental and
Aurora will bring autonomous trucking systems to the mass market – starting with the USA by
- Just a few weeks ago, they defined the design and architecture of the future driverless
system, reaching this development milestone less than a year after their partnership began.
Tires delivers stable profitability: adjusted EBIT margin of 13.5 percent
The Tires group sector delivered stable profitability despite weak tire-replacement markets in
Europe and North America, achieving sales of €14.0 billion (2022: €14.0 billion, -0.3 percent). At
13.5 percent, the adjusted EBIT margin was higher than in the previous year (2022: 13.1 percent).
The margin improvement was mainly due to the continued high share of premium tires and a
strong end-of-year business in Europe.
With the UltraContact NXT, Continental last year launched the most sustainable production tire
currently on the market. It has been available to tire dealers in Europe since July 2023. Comprising
up to 65 percent renewable, recycled and mass balance certified materials, it combines a high
share of sustainable materials with maximum safety and performance. It therefore has the highest
possible rating (“A”) of the EU tire label in all performance categories (rolling resistance, wet
braking and exterior noise).
Continental has also established a strong position in the tire original equipment segment for
electric vehicles. The 10 highest-volume manufacturers of electric vehicles currently all place their
trust in tires from Continental.
ContiTech stronger: adjusted EBIT margin of 6.7 percent
The ContiTech group sector performed positively despite a weak industrial environment, generating sales of €6.8 billion (2022: €6.6 billion, +3.7 percent) and an adjusted EBIT margin that was up significantly year-on-year at 6.7 percent (2022: 4.7 percent).
In May last year, ContiTech also launched a strategic realignment aimed at enhancing the group
sector’s impact and efficiency, improving customer and market proximity and further expanding its
industrial business. Alongside this, the group sector also strengthened its industrial business
through company takeovers, fully acquiring the printing technology business of Trelleborg, for
example.
This step expanded the technology company’s range of surface solutions in the field of printing
technology at the same time as boosting its business with industrial clients. Continental also
acquired the conveyor and maintenance company Vertech AB, a leading service provider for the
mining industry in Sweden and Norway. This acquisition marks an important next step toward
ContiTech’s goal of offering its industrial customers in Sweden and other northern European
countries a comprehensive package of products, services and solutions.
Number of employees
At the end of 2023, Continental had around 200,000 employees (+1.9 percent compared with the
end of 2022). The number of software and IT specialists increased slightly to around 22,000
worldwide.
Continental develops pioneering technologies and services for sustainable and connected mobility of people
and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent and affordable
solutions for vehicles, machines, traffic and transportation. In 2023, Continental generated preliminary sales
of €41.4 billion and currently employs around 200,000 people in 56 countries and markets.
- Consolidated sales of €41.4 billion (2022: €39.4 billion, +5.1 percent)
- Adjusted EBIT of €2.5 billion (2022: €1.9 billion, +31.6 percent)
- Adjusted EBIT margin of 6.1 percent (2022: 4.9 percent)
- Net income of €1.2 billion (2022: €67 million, +1,635 percent)
- Adjusted free cash flow of €1.3 billion (2022: €200 million, +547 percent)
- CEO Nikolai Setzer: “We achieved our goals for 2023 and made improvements toward
achieving our mid-term targets, despite the challenging conditions. For this, my special
thanks go to our around 200,000 employees worldwide” - CFO Katja Garcia Vila: “We significantly increased our adjusted free cash flow thanks to
an improvement in operating earnings and a reduction in inventories and receivables” - Automotive improves: adjusted EBIT margin of 1.9 percent; order intake of around
€27.1 billion - Tires delivers stable profitability: adjusted EBIT margin of 13.5 percent
- ContiTech stronger: adjusted EBIT margin of 6.7 percent
- Expectations for fiscal 2024: consolidated sales of around €41.0 billion to €44.0 billion;
adjusted EBIT margin of around 6.0 to 7.0 percent - Dividend proposal of €2.20 per share
Hanover, March 7, 2024. Continental achieved its financial targets in the past fiscal year, taking the
DAX company a step closer to its mid-term targets as it continues to defy the challenging
conditions. The geopolitical situation, additional inflation-related costs of around €1.4 billion,
exchange-rate effects and high costs for special freight all had a considerable impact on
performance. Continental also presented its strategy for increasing value creation and achieving its
mid-term targets at its Capital Market Day in December 2023.
For the current fiscal year, the technology company is targeting an increase in sales and earnings
(consolidated sales: around €41.0 billion to €44.0 billion, adjusted EBIT margin: around
6.0 to 7.0 percent). Continental expects the margin to improve further, particularly in the
Automotive group sector, thanks mainly to the cost-cutting measures, price adjustments and
efficiency improvements adopted last year. The goal is also to achieve above-market growth.
“The past fiscal year posed major challenges for us with geopolitical uncertainties, persistent
strains on the supply of semiconductors, and inflation,” said Continental CEO Nikolai Setzer at the
annual press conference in Hanover on Thursday, adding: “We achieved our goals for 2023 and
made improvements toward achieving our mid-term targets, despite the challenging conditions. For
this, my special thanks go to our around 200,000 employees worldwide. I’m proud of our team,
because together we made substantial progress. In 2024, we will once again tackle the challenges
facing us head on and pursue our goals for the year with determination.”
Adjusted operating result increases by 31.6 percent in 2023
In the past fiscal year, Continental achieved consolidated sales of €41.4 billion (2022:
€39.4 billion, +5.1 percent). Its adjusted EBIT was €2.5 billion (2022: €1.9 billion, +31.6 percent),
corresponding to an adjusted EBIT margin of 6.1 percent (2022: 4.9 percent). All three group
sectors contributed to the improved adjusted EBIT margin.
Net income increased to €1.2 billion in 2023 (2022: €67 million, +1,635 percent). Adjusted free
cash flow was €1.3 billion (2022: €200 million, +547 percent).
“Thanks to an improvement in operating earnings and a reduction in inventories and receivables,
we significantly increased our adjusted free cash flow. We therefore slightly exceeded our cash
flow target, which speaks to our financial strength,” said Continental CFO Katja Garcia Vila.
Dividend proposal of €2.20 per share
Based on the updated distribution strategy of 20 to 40 percent of net income, the Continental
Executive Board will propose a €0.70 increase in the dividend to €2.20 per share for the past fiscal
year. At around 38 percent, the distribution to shareholders is at the upper end of the defined
range and would amount to around €440 million in total.
Market outlook and forecast for fiscal 2024
In 2024, Continental expects the global production of passenger cars and light commercial vehicles
to change by -1 to 1 percent. Last year, this increased by almost 10 percent compared with 2022 to
more than 90 million vehicles. For the global tire-replacement business, the technology company
expects sales volumes to develop by 0 to 3 percent.
Higher costs for wages and salaries – expected to amount to around €500 million – will weigh
heavily on the earnings position in fiscal 2024, with around half of these costs attributable to the
Automotive group sector.
Based on these assumptions and given the exchange rates at the beginning of the fiscal year,
Continental 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.
Continental expects the Automotive group sector to generate sales of around €20.0 billion to
€22.0 billion and an adjusted EBIT margin of around 3.0 to 4.0 percent.
For the Tires group sector, Continental forecasts sales of around €14.0 billion to €15.0 billion and
an adjusted EBIT margin of around 13.0 to 14.0 percent.
Continental anticipates sales in the ContiTech group sector of around €6.6 billion to €7.0 billion
and an adjusted EBIT margin of around 6.5 to 7.5 percent.
Capital expenditure before financial investments is forecast to be around 6.0 to 7.0 percent of
sales.
Adjusted free cash flow is expected to be around €0.7 billion to €1.1 billion.
“In the current year, we are targeting an increase in sales and in the adjusted EBIT margin for the
Continental Group. Despite high special expenses, we expect the corridor for adjusted free cash
flow to be only slightly below that of the previous year,” said Garcia Vila.
For one thing, payments for the buyback of shares in ContiTech AG will impact free cash flow by
around €500 million in 2024. The background in this regard is that in order to strengthen
Continental’s liquidity during the financial market crisis, the company sold 24.9 percent of its
shares in ContiTech AG to Continental Pension Trust e. V. in 2009. The shares were then bought
back in order to restore the original ownership structure. Continental AG therefore once again fully
owns ContiTech AG, which now operates under the name ContiTech Deutschland GmbH.
Furthermore, Continental anticipates additional special expenses of around €500 million. These
relate to the carve-out of the Original Equipment Solutions (ContiTech) and User Experience
(Automotive) business areas, as well as the measures already announced in the Automotive group
sector to strengthen competitiveness. In total, it therefore expects special expenses of around
€1 billion, which will impact adjusted free cash flow in fiscal 2024.
Automotive improves: adjusted EBIT margin of 1.9 percent; order intake of €27.1 billion
In the Automotive group sector, sales increased by 10.8 percent to €20.3 billion (2022:
€18.3 billion). Automotive significantly increased its adjusted EBIT margin compared with the
previous year to 1.9 percent (2022: -0.3 percent). The improvement in earnings was attributable in
particular to higher production efficiency thanks to a more stable material supply, strict cost
discipline and a lower special freight volume.
In addition, Continental further increased order intake in the Automotive group sector. The
technology company generated orders worth around €27.1 billion last year, confirming its strong
position in terms of purchase-relevant future technologies. Year-on-year, the order volume
increased by around 16 percent (2022: more than €23 billion).
The order from the exclusive partnership with Aurora contributed to this. Together, Continental and
Aurora will bring autonomous trucking systems to the mass market – starting with the USA by
- Just a few weeks ago, they defined the design and architecture of the future driverless
system, reaching this development milestone less than a year after their partnership began.
Tires delivers stable profitability: adjusted EBIT margin of 13.5 percent
The Tires group sector delivered stable profitability despite weak tire-replacement markets in
Europe and North America, achieving sales of €14.0 billion (2022: €14.0 billion, -0.3 percent). At
13.5 percent, the adjusted EBIT margin was higher than in the previous year (2022: 13.1 percent).
The margin improvement was mainly due to the continued high share of premium tires and a
strong end-of-year business in Europe.
With the UltraContact NXT, Continental last year launched the most sustainable production tire
currently on the market. It has been available to tire dealers in Europe since July 2023. Comprising
up to 65 percent renewable, recycled and mass balance certified materials, it combines a high
share of sustainable materials with maximum safety and performance. It therefore has the highest
possible rating (“A”) of the EU tire label in all performance categories (rolling resistance, wet
braking and exterior noise).
Continental has also established a strong position in the tire original equipment segment for
electric vehicles. The 10 highest-volume manufacturers of electric vehicles currently all place their
trust in tires from Continental.
ContiTech stronger: adjusted EBIT margin of 6.7 percent
The ContiTech group sector performed positively despite a weak industrial environment, generating sales of €6.8 billion (2022: €6.6 billion, +3.7 percent) and an adjusted EBIT margin that was up significantly year-on-year at 6.7 percent (2022: 4.7 percent).
In May last year, ContiTech also launched a strategic realignment aimed at enhancing the group
sector’s impact and efficiency, improving customer and market proximity and further expanding its
industrial business. Alongside this, the group sector also strengthened its industrial business
through company takeovers, fully acquiring the printing technology business of Trelleborg, for
example.
This step expanded the technology company’s range of surface solutions in the field of printing
technology at the same time as boosting its business with industrial clients. Continental also
acquired the conveyor and maintenance company Vertech AB, a leading service provider for the
mining industry in Sweden and Norway. This acquisition marks an important next step toward
ContiTech’s goal of offering its industrial customers in Sweden and other northern European
countries a comprehensive package of products, services and solutions.
Number of employees
At the end of 2023, Continental had around 200,000 employees (+1.9 percent compared with the
end of 2022). The number of software and IT specialists increased slightly to around 22,000
worldwide.
Continental develops pioneering technologies and services for sustainable and connected mobility of people
and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent and affordable
solutions for vehicles, machines, traffic and transportation. In 2023, Continental generated preliminary sales
of €41.4 billion and currently employs around 200,000 people in 56 countries and markets.
