Continental Adjusts Sales, EBIT Projections for Rest of 2022
Coming off strong sales during the first quarter, Continental AG has revised its sales and margin projections slightly downward for the rest of 2022.
Continental expects that its global, consolidated, full-year sales will total 38.3 billion euros versus the target of 38 billion euros to 40 billion euros that it originally predicted.
The company expects its adjusted EBIT margin will fall within the range of 4.7% to 5.7%, down from a projected range of 5.5% to 6.5%.
Continental believes its tire sales will fare better during the rest of 2022.
The Hanover, Germany-based firm expects its tire sales will fall within the 13.8 billion euros to 14.2 billion euros range for the full year versus prior projections of 13.3 billion euros to 13.8 billion euros.
In a recent statement, Continental said that "depending on the severity of the disruption" caused by the current geopolitical situation, including the Russia-Ukraine war, sales and earnings for the full year may be "lower."
The company also released its first quarter 2022 results.
During the first three months of the year, Continental achieved sales of 9.3 billion euros, up from 8.6 billion euros during the same period in 2021.
However, its EBIT margin dropped from 8.5% during the first quarter of 2021 to 4.7% during 1Q 2022.
Tire group sales totaled 3.3 billion euros during 1Q 2022 versus 2.7 billion euros during 1Q 2021.