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Continental posts robust set of 2018 outcomes | Automotive Trade Information
- Annual targets met: gross sales EUR44.4bn adjusted EBIT margin 9.3%
- Govt Board’s dividend proposal: EUR4.75 per share (up EUR0.25)
- Web revenue of EUR2.9bn near file degree
- Continental reaffirms annual steerage regardless of continued weak markets
- Powertrain enterprise will commerce available on the market beneath the title “Vitesco Applied sciences”
Continental is making ready for the potential partial IPO of its powertrain enterprise. Sono Motors is utilizing Continental’s electrical drive system in its electrical automobile
Continental has posted a robust set of economic outcomes for 2018. The corporate’s gross sales totaled EUR44.4bn and the adjusted EBIT margin was 9.3%, which meant that the provider big achieved its adjusted annual targets.
“Over the previous yr, now we have once more demonstrated our wonderful efficiency regardless of the weak markets. We’re persevering with to develop quicker than our related industries and markets,” mentioned Dr. Elmar Degenhart, CEO of Continental.
“Autonomous driving, electrical mobility and connectivity: We’re the architects of an ecosystem of secure, clear and clever mobility. When individuals discuss concerning the ‘mobility of the longer term,’ they imply Continental. We’re supplying what others are nonetheless testing. Our options, elements, and techniques are already producing enhanced security, effectivity and luxury in 4 out of 5 autos worldwide,” mentioned Degenhart.
“Grip is one among our conventional key fields of experience within the tyre enterprise. It’s a part of our company tradition, and we switch it even to our connectivity know-how, offering reliable options to supply safe contact, from the highway to the cloud, all from a single supply like no different firm.”
Conti mentioned its distinctive know-how portfolio as soon as once more helped it to develop at a quicker charge than its markets in 2018. Continental’s natural gross sales progress was 3%. “Our progress is testomony to the arrogance our current and lots of new international clients have in our innovation capability. As well as, our internet revenue of €2.9 billion was virtually at a file degree. That may be a strong outcome given the disappointing market growth prior to now yr,” mentioned Wolfgang Schäfer, Continental’s CFO.
Conti mentioned that 2019 has received off to a ‘subdued begin, as anticipated, on account of persevering with market uncertainty’. Continental is reaffirming its preliminary steerage from early January. The corporate nonetheless expects gross sales of round EUR45-47bn and an adjusted EBIT margin of roughly 8-9%. “The steerage for 2019 is predicated partially on the idea that the worldwide manufacturing quantity of passenger vehicles and light-weight business autos shall be secure at 94 million. Manufacturing within the first half of the yr is prone to be down on final yr’s determine. In our eyes, threat components embrace the unclear ramifications of financial growth in China and the commerce disputes between the usA. and China and between the usA. and Europe – after which there’s additionally the unclear scenario with Brexit,” Schäfer mentioned.
Within the present fiscal yr, Continental mentioned it’s going to lay the vital groundwork for the organizational realignment introduced final July. An important a part of this realignment is the potential partial IPO of the powertrain enterprise, which, beneath the title “Vitesco Applied sciences,” will develop, promote and produce techniques and options for typical and electrified drives for automotive producers worldwide. “We accomplished the transformation of our powertrain enterprise into an impartial group of authorized entities in file time,” Degenhart mentioned. The corporate’s preparations for a possible partial IPO within the second half of 2019 are on schedule, it mentioned.
The order consumption within the Automotive divisions, which concentrate on automobile electronics, remained at a excessive degree. It amounted to round EUR40bn prior to now fiscal yr – on a par with the earlier yr’s file degree.
Recruitment drive for software program engineers
The worldwide Continental crew comprised 243,226 workers in 60 international locations and markets on the finish of the yr. Continental has roughly 49,000 engineers engaged on new tendencies and applied sciences, and just below a 3rd of these engineers have a background in software program. Continental desires to extend its workforce of software program and IT specialists from 19,000 at current to 25,000 by the top of 2022.