BERLIN — Continental reported an adjusted profit margin of 5% in 2022, preliminary figures released on Tuesday.
Suppliers had expected to hit the upper end of their adjusted earnings forecasts in November, but warned of a highly volatile business environment.
Continental also warned that it expects to pass on more energy and labor costs to customers next year.
After a turbulent first half amid lockdowns in China and war in Ukraine, the automotive sector began to show recovery in the third quarter, with an adjusted margin of -0.2% for the full year, but the fourth quarter. was stronger at 2.1%. margin.
In the tire division, the company reported an annual profit margin of 13.1%, while the fourth quarter profit margin was slightly lower at 10.3%.
Rising production costs and restrictions in China due to COVID-19 reduced the ContiTech Group division’s profit margin to 4.7% for the year, below the forecast of 6% to 7%.
The company said that cash flow was lower than expected, resulting in adjusted free cash flow of around €200 million, far below the €600-800 million forecast.
Continental will release full results for the year on March 8th.
Continental ranked 8th car news europe A list of the world’s top 100 suppliers, with $22.4 billion in sales to automakers in 2021.
This article was optimized by the SEO Team at Clickworks SEO