HANOVER (dpa-AFX) - German automotive parts maker Continental AG (CTTAY.PK) reported Tuesday a profit in its first quarter, compared to prior year's loss, despite a slight drop in sales. Further, the firm updated its fiscal 2025 outlook to reflect the planned Automotive Group spin-off, which has been reported separately as a discontinued operation.
In the first quarter, net income attributable to shareholders of the parent was 68 million euros, compared to loss of 53 million euros a year ago. Earnings per share were 0.34 euro, compared to loss of 0.27 euro last year.
Adjusted EBIT was 639 million euros or margin of 6.6 percent. The company noted that planned Automotive spin-off has led to mandatory application of IFRS 5 accounting standard.
Without application of IFRS 5, adjusted EBIT would have been 586 million euros or 6 percent margin. In the prior year, adjusted EBIT was 201 million euros, and margin of 2.1 percent.
The company noted that the Automotive group sector achieved significantly higher earnings year-on-year, despite declining automotive production in Europe and North America. Tires also recorded a strong improvement in earnings in the first quarter.
Consolidated sales were 9.707 billion euros, down 0.8 percent from 9.788 billion euros a year ago.
In the first quarter of 2025, the global production of passenger cars and light commercial vehicles was slightly higher year-on-year, improving by around 1 percent to 21.7 million units.
Continental CEO Nikolai Setzer said, 'We made a solid start to the year, significantly improving our earnings for the Continental Group in the first quarter compared with 2024, and are confident that we will achieve our annual targets.'
Looking ahead, for fiscal 2025, for the continuing operations of Tires and ContiTech, Continental expects consolidated sales in the range of around 19.5 billion euros to 21.0 billion euros and an adjusted EBIT margin of around 10.5 to 11.5 percent.
For the discontinued operations of the Automotive group sector, Continental expects sales of around 18.0 billion euros to 20.0 billion euros and an adjusted EBIT margin of around 2.5 to 4.0 percent, operationally unchanged and excluding the effects of IFRS 5.
The forecasts for sales and adjusted EBIT margin for the individual Automotive, Tires and ContiTech group sectors remain unchanged.
The company added that the outlook for the year does not take into account any potential impact resulting from possible future trade restrictions.
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