Continental reports sales, profitability around lower end of guidance

Continental's Sales and Profitability Forecasts Hit Lower Guidance

Continental's Financial Performance Overview

By Amir Orusov

Sales and Profit Margin Expectations

Jan 21 (Reuters) - German car parts supplier Continental on Wednesday reported preliminary full-year sales and profit margin around the lower end of its guidance range.

ContiTech Division Outlook

The group said sales are expected to come in at around 19.7 billion euros ($23.1 billion) for 2025, compared with its guidance range of 19.5-21 billion euros.

Future Divestitures and Market Response

The group's margin of adjusted earnings before interest and tax (EBIT) over sales in 2025 is expected at 10.2%, meeting its guidance range of between 10% to 11%, the company said in a statement.

However, the margin in the rubber and plastics division ContiTech would be around 4.9%, falling short of its outlook of 6%-7%, the company said, explaining the reasons with, among others, the lack of market recovery, transformation expenses and currency effects.

"Nevertheless, this does not affect our plans to sell ContiTech this year," CFO Roland Welzbacher said in a statement, referring the lower-than-expected results in the division.

"Strong interest from potential buyers confirms ContiTech's value and potential," Welzbacher added.

The divestiture offers additional cash return opportunities, J.P.Morgan said in a note.

The group said in December that it was planning to sell the rubber and plastics division in the second half of 2026.

Additionally, the company specified that the closing period of the sale of its Original Equipment Solutions (OESL) business is anticipated in the first quarter of 2026.

Continental shares slid 1.4% at 1118 GMT.

($1 = 0.8543 euros)

(Reporting by Amir Orusov and Rachel More, additional reporting by Anastasiia Kozlova, editing by Linda Pasquini and Ludwig Burger)