Tire sales were a bright spot for Continental AG during 2024. The company’s Tires group achieved $14.6 billion in revenue for the full year.
That’s slightly less than a 1% difference from prior-year results.
Overall, Continental AG achieved $41.7 billion in sales during 2024, down around 4% on a year-over-year basis.
The Hanover, Germany-based firm generated an adjusted EBIT of $2.8 billion, a year-over-year increase of 6.1%.
“Continental continued to improve its earnings and achieved its corporate targets in the past fiscal year,” according to company officials.
“Against the backdrop of a weak macro-economic environment, especially in its core market of Europe, and a global downturn in automotive production, the company’s focused implementation on its value-creation strategy is proving effective.”
Strength in tires
Continental’s Tires group “remained strong and improved its earnings slightly compared with the previous year,” achieving an adjusted EBIT margin of 13.7%, up versus 2023.
Positive results are credited to “growing sales share of premium passenger tires and a stronger winter tire business in Europe,” according to Continental officials.
The company plans to boost tire production in its Asia-Pacific region by an additional three million units per year “to make the most of the area’s potential for growth.”
This includes a $315 million investment at its tire plant in Rayong, Thailand.
ContiTech results
Continental’s ContiTech division experienced a decline in earnings during 2024, posting sales of $6.7 billion, a 6.7% year-over-year decline.
The unit’s adjusted EBIT margin was 6.2%, a slight decline from 2023 levels.
“ContiTech’s strategy is aimed at strengthening its industrial business. The group’s industrial expertise is in demand.”
Outlook for 2025
Continental, as a whole, expects to achieve consolidated net sales of around $40 billion in 2025. Adjusted EBIT margin is projected to range from 6.5% to 7.5% for the full year.
The firm’s Tires group is expected to top up to $15 billion in sales during 2025.
The company is moving forward with plans to spin off its Automotive group into “an independent European company,” according to Continental officials. (Revenue in this part of Continental’s business fell by 4.3% during 2025.)
“Our goal is to continue to improve in 2025,” says Continental Chief Financial Officer Olaf Schick. “Our cost and efficiency measures are proving effective. This is all the more important because we do not expect any tailwinds from the market this year.”
