Continental AG posted a 16.7% increase in sales and a 5.2% increase in EBIT during 2022. However, its year-over-year net income fell 95.4%.
The company’s performance "was particularly impacted by the effects of the war in Ukraine, the restrictions due to the coronavirus pandemic in China, the ongoing semiconductor shortage and additional costs of around 3.3 billion euros resulting from price increases for raw materials, semi-finished products, energy and logistics," according to Continental officials.
"In the past fiscal year, net income was influenced by negative special effects amounting to around one billion euros. Higher interest rates and other valuation-related effects, in particular, resulted in impairment losses of more than 850 million euros in the (company's) Automotive group sector. In connection with its business activity in Russia, Continental also impaired assets of around 87 million euros as a result of the sanctions imposed. Consequently, net income amounted to 67 million euros."
Looking ahead, Continental expects to see consolidated sales of around 42 billion euros for full-year 2023 and is forecasting that its tire business will achieve sales of 14.5 billion euros to 15.5 billion euros, "with an adjusted EBIT margin of around 12% to 13%."
