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German automotive supplier Continental has slightly dampened its outlook for this year, citing declines in North American and European markets for replacement tyres.
For the year, sales are now expected to be around €41.5 billion ($45.5 billion) to €44.5 billion, compared to the previous estimate of €42 billion to €45 billion.
But the picture was brighter in other areas for the Hanover-based manufacturer.
For the year as a whole, the company expects a slightly higher production of passenger cars and light commercial vehicles: 3% to 5% more cars than last year are set to be produced – instead of 2% to 4%.
That impacts Continental because its parts and tyres business is dependent on the carmakers’ production levels.
In addition, the company is now no longer assuming the previously reported €1.7 billion in additional costs for salaries, materials, energy and logistics in fiscal 2023. The figure was lowered to €1.4 billion.
In the second quarter, sales climbed by 10.4% to €10.4 billion.
Net income was €209 million, compared to last year’s loss of €251 million. Earnings before interest and taxes (EBIT) was €377 million, compared to the prior year’s loss of €165 million.
