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  • 09 Nov 23
Q3 23: Strong Auto margin step up confirmed for Q4

The key takeaway from Continental’s Q3 23 was the confirmation of the FY23 Automotive margin guidance (2.0-2.5%) on the back of the retroactive compensation for cost inflation and R&D reimbursements. This is clearly reassuring since it calls for a huge step-up in the division’s profitability to a >5% Adjusted EBIT margin (vs. 1.0% in 9M 23). We expect limited changes to the consensus and our estimates, and see the upcoming CMD as a positive catalyst.

Companies: Continental AG

AlphaValue
  • 10 Aug 23
Q2 23: Expected guidance adjustments lead to a focus on the Automotive margin

Since Continental’s Q2 23 results had already been pre-released, the focus was on the FY23 guidance update. The group mainly confirmed what the market was already pricing following peers’ publications: a weakening tyre market triggering a cut to the revenue target and a raised auto production expectation supporting the Automotive division guidance. The latter looks supportive for the Conti’ equity story, which overwhelmingly relies on the growth of auto supplier activity.

Companies: Continental AG

AlphaValue
  • 12 May 23
Continental’s lagging cash collection did not overshadow its improving Automotive performance

Continental posted Q1 23 results that beat consensus on the adj. EBIT across all the divisions with Tyres’ margins remaining strong and Automotive profitability at last returning to the the black. This is likely to offset the negative surprise at the FCF level dragged down by higher than-expected capex, high inventories and still-high receivable. Overall, as with its peers, the management confirmed its FY23 guidance and market outlook, calling for minor changes to our and consensus’ forecasts an

Companies: Continental AG

AlphaValue
  • 08 Mar 23
Continental continues to surprise...positively

With FY22 figures already known, all eyes were on the FY23 outlook and FY22 dividend proposal. Neither disappointed! The dividend proposal came in 8% above expectations, highlighting the confidence for FY23 after a weak FY22. The newly-released guidance was more optimistic than consensus with profitability in line in relative terms, therefore calling for upgrades to FY23 EPS. With Conti’s Automotive unit seen as a tracker of the group’s long-awaited progress, we especially welcome the consensus-

Companies: Continental AG

AlphaValue
  • 14 Nov 22
Automotive feeling better?

Continental posted robust Q3 22 results overall with consensus-beating adjusted EBIT margins on both Automotive and Tires. A c.€500m goodwill impairment was booked as a result of rising interest rates. FCF came in fully in line with expectation and the FY22 guidance was confirmed. Going forward we would like to flag the good performance of the Automotive unit. This together with the c. €6bn order intake in Q3 22 (already announced) might foreshadow the beginning of the long-awaited ramp-up of Co

Companies: Continental AG

AlphaValue
  • 11 Mar 22
Continental sticks to its unloved structure

The FY21 results came in strong, at the upper end of the guidance and close to consensus, which has not been the case for a while now. EPS was ahead of expectations due to a one-time positive effect from discontinued activities. As a result, the dividend came in ahead of expectations at €2.20. Looking into FY22, the newly-issued guidance appears far from being realistic, as it excludes any impact from the Russia-Ukraine war. Splitting the group is not planned.

Companies: Continental AG

AlphaValue
  • 26 Mar 21
Vitesco: feedback from the CMD

Conti’s powertrain division, to be spun-off in H2 21, held a CMD to announce its mid-term strategy. The next five years will be a transition phase to exit from non-core non-profitable activities and focus on growing the Electrified Technologies segment to reach breakeven by 2024. The 2025 horizon outlook looks reachable, but the visibility remains low on the timeline of the transition in the years to come.

Companies: Continental AG

AlphaValue
  • 10 Mar 21
Careful FY21 outlook but mid-term guidance confirmed

Conti released a FY20 operational performance which was in line with its guidance (organic sales down 12.7% yoy and adjusted EBIT margin of 3.5%), while restructuring charges weighed on the bottom line. The company’s guidance for 2021 looks cautious and uncorrelated to mid-term targets, as more time and further restructuring and R&D expenses are required to reach its cruising speed towards 2025 horizon objectives.

Companies: Continental AG

AlphaValue
  • 16 Nov 20
New FY20 guidance and new CEO: Conti soon back on the road?

Continental reported its Q3 20 figures with surprising results coming from the Rubber and Powertrain divisions. Most of the group’s recovery comes from the Rubber division due to its significant exposure to the replacement tyre market. In the Powertrain division, a huge spike in EV sales helped with its recovery, while its profitability, although low, benefited from a weak comparison base. It is now up to Nikolai SETZER (the new CEO) to drive Conti towards FY20 outlook’s positive FCF.

Companies: CTT CON CTTAF CON CNT CONTEUR 1CON CONN

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  • 06 Aug 20
Farewell, for now, to advanced autonomous tech

Continental posted a mixed set of H1 20 results with shrinking revenue (-25.9% yoy) dragged down by the non-rubber business (-28.3% yoy). This revenue contraction translated into a -€448.8m profitability hit (margin of -2.7% vs. 4.8% in H1 19). As such, FCF was affected (-75.7% yoy) though benefiting from favorable working capital and lower capex (-35% yoy). Despite the lack of an official outlook, the company expects an improvement in the automotive market for Q3 20.

Companies: Continental AG

AlphaValue
  • 13 May 20
Production ramp-up is the name of the game

Q1 20 numbers were heavily impacted by production slowdowns, mainly in China. Production seems to be a persistent issue that will affect the Q2 results as COVID-19 fully reflects its impact in Europe and North America. Despite the above expectations, results in Q1, the adjusted EBIT experienced a huge contraction, falling by 47% yoy, and paving the way to a tough FY20.

Companies: Continental AG

AlphaValue
  • 05 Mar 20
2019 numbers were horrible, except for the dividend

Management had to release five profit warnings since spring 2018. In spite of that, the final 2019 accounts showed a much higher than expected net loss of €1.23bn. We had expected a net loss of €175m, while the consensus (based on Continental’s own survey) was at €-493m. However, the dividend was only cut from €4.75 paid for 2018 to €4.00, whereas we had expected €3.75.

Companies: Continental AG

AlphaValue
  • 12 Nov 19
Unchanged car production expected for 2020 and no material recovery thereafter

Management has turned rather cautious for the next five years and does not expect a material recovery after an expected 6% fall for the current year. For 2020, it expects the production of passenger cars and vans to be unchanged, at best.

Companies: Continental AG

AlphaValue
  • 22 Oct 19
Management realises that takeovers prior to 2008 were too expensive

Continental acquired VDO for more than €11bn in 2007. At that time, VDO generated annual turnover of probably €8bn, but these activities have generated rather small profit margins ever since and Powertrain suffered the occasional loss. Management has now pulled the plug and has written €2.5bn off.

Companies: Continental AG

AlphaValue
  • 25 Sep 19
2030 strategic plan released

The Management and Supervisory Boards have discussed Continental’s 2030 strategy and the structural transformation programme for the years 2019-29. All of this will lead to one or more plant closures (primarily in Germany and the USA) and to a good 5,000 lay-offs (2% of the worldwide workforce).

Companies: Continental AG

AlphaValue

Continental AG

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Latest News/RNS

(more news)
Date Source Announcement
26Jun17 13:00 MKW Century Announces Filing of Year-End Financial Results, Management Discussion and Analysis and Annual Information Form
13Feb17 12:30 MKW Century Announces Filing of Third Quarter Financial Results and Related Management's Discussion and Analysis
31Mar16 13:00 MKW Century Provides Business Update and Announces Timing of 2016 Year End Results
05Feb16 21:01 MKW Century Announces Filing of Third Quarter Results and Completion of Continuation to the Cayman Islands
16Dec15 21:30 MKW Century Announces Results of Special Meeting of Shareholders
30Nov15 18:00 MKW Century Announces the Passing of its Director, Maurice Strong
16Nov15 21:45 MKW Century Iron Mines Corporation Announces Name Change to Century Global Commodities Corporation (TSX:CNT)
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