Continental reports lower sales for 2024 with proposed dividend of €2.50 per share
Hanover, Germany – Continental continued to improve its earnings and achieved its corporate targets in the past fiscal year. Against the backdrop of a weak macroeconomic environment, especially in its core market of Europe, and a global downturn in automotive production, the company’s focused implementation of its value-creation strategy is proving effective. The Executive Board’s decision to spin off the Automotive group sector is another important step toward leveraging Continental’s full potential for creating value. Despite a global automotive market that is expected to continue to decline, the technology company is targeting an increase in earnings for 2025 (consolidated sales of around €38.0 billion to €41.0 billion and an adjusted EBIT margin of around 6.5 to 7.5 percent). This will primarily be achieved through the measures taken to improve earnings. Continental therefore expects an increase in its adjusted earnings margin, particularly in the Automotive and ContiTech group sectors.
“Weak economic development, particularly in Europe, coupled with a decline in automotive production caused major headwinds last year. Our priority is to create value. By rigorously implementing this strategy, we further improved our earnings in this challenging environment and achieved our annual targets for the Continental Group,” said Continental CEO Nikolai Setzer at the annual press conference in Hanover on Tuesday, adding: “Following the Executive Board’s decision in favor of a spin-off, we have also initiated the realignment of the company. Our group sectors have each been set up with clear structures and are leading players in their product segments and markets. They have matured and are now ready for greater independence.”
Adjusted operating result (adjusted EBIT) increases by 6.6 percent in 2024
In the past fiscal year, Continental achieved consolidated sales of €39.7 billion (2023: €41.4 billion, -4.1 percent). Its adjusted operating result was €2.7 billion (2023: €2.5 billion, +6.6 percent), corresponding to an improved adjusted EBIT margin of 6.8 percent (2023: 6.1 percent).
Net income totaled €1.2 billion in 2024 (2023: €1.2 billion, +1.0 percent). Adjusted free cash flow was €1.05 billion (2023: €1.3 billion, -18.6 percent).
“We achieved good results in 2024 despite the difficult economic environment. We even slightly exceeded our annual target for adjusted free cash flow, which was mainly due to our good tire business and the positive cash contribution from Automotive,” said Continental CFO Olaf Schick.
Based on the company’s adjusted free cash flow and improved net income, Continental’s Executive Board will propose a €0.30 increase in the dividend to €2.50 per share for the past fiscal year. This would amount to a distribution of around €500 million. At around 43 percent, the distribution to shareholders is slightly above the defined range of 20 to 40 percent due to one-off, non-cash tax effects. Without these tax effects, the distribution to shareholders would fall within the defined range. The Annual Shareholders’ Meeting to be held on April 25, 2025, will decide on the dividend payment amount.