FRANKFURT (Dow Jones) — The automotive supplier Continental is confident about the current year as a whole and is sticking to its goals for 2023 as well as the medium-term outlook. “We do expect higher burdens in 2023,” said Conti CEO Nikolai Setzer, according to the text of the speech for the annual general meeting. However, global production of passenger cars and light commercial vehicles will continue to recover. “By 2 to 4 percent. Especially in our core markets of Europe and North America, the manufacturers are producing more cars again,” the manager confirmed the expectations.
That doesn’t mean tailwind. “But still: less headwind,” added Setzer. In 2023, group sales are expected to increase – as planned – to around 42 billion to 45 billion euros from 39.4 billion euros in the previous year. The adjusted EBIT margin should improve to around 5.5 to 6.5 from 5.0 percent.
According to the CEO, the group wants to “sharpen” the focus on costs for the shareholders’ meeting taking place on Thursday next week – so that profitability “continuously increases”. As part of the structural program “Transformation 2019 – 2029”, more than 850 million euros gross are to be saved annually from 2024.
In the medium term, the group from Hanover wants to achieve an adjusted EBIT margin of between around 8 and 11 percent again, Setzer promised the shareholders. In recent years, the return has slipped steadily due to high special charges, depreciation and a sometimes adverse industry environment. In 2015, Conti had still achieved an adjusted EBIT margin of a good 11 percent.
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(END) Dow Jones Newswires
April 20, 2023 08:52 ET (12:52 GMT)
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