German automotive supplier Continental has reduced its sales guidance for the second time this year, citing weakening tyre demand across Europe and North America. The Hanover-based manufacturer now projects sales between €39.5 billion and €42 billion for 2024, down from its August forecast of €40 billion to €42.5 billion.
The revised outlook emerges amid significant headwinds for German automotive manufacturers, with industry giants Mercedes and BMW previously issuing profit warnings. The sector faces mounting pressure from declining vehicle demand and intensifying Chinese competition.
Despite challenging market conditions, Continental’s third-quarter performance exceeded expectations, with pre-tax profits reaching €677 million, nearly doubling from €346 million in the previous year. Chief Financial Officer Olaf Schick attributed this success to strategic cost reductions and price adjustments, noting a particularly strong start to the winter tyre business.
Vehicle production figures paint a concerning picture across major markets. European production declined 6 per cent to 3.6 million units in the third quarter, while North American output fell 5 per cent to 3.8 million vehicles. Chinese production experienced a 3 per cent reduction, producing 7.3 million vehicles.
The company’s ContiTech division, serving both industrial clients and automotive manufacturers, faces persistent challenges. Chief Executive Nikolai Setzer emphasised the division remains on course for a planned spin-off by the end of 2025, maintaining optimism despite current market pressures.
Continental’s shares responded positively to the mixed news, climbing 10.4 per cent to close at €62.38, reaching a six-month high as investors appreciated the company’s resilient profit performance despite market headwinds.
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