# Continental beats expectations with 4.4% margin in Q2
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-07-20
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Continental Q2 Sales Exceed Expectations at €9.4B
Meta Description: Continental exceeds analyst expectations, confirming lower earnings forecast for the year ahead of half-year report on August 9.
URL: https://financedigest.com/continental-beats-expectations-with-4-4-margin-in-q2html

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-07-20t085135z2lynxmpei6j0dertroptp4continental-results-1736815564193-compressed.jpg)

BERLIN (Reuters) -Continental reported better-than-expected sales of 9.4 billion euros ($9.63 billion) in the second quarter on Wednesday with an adjusted earnings margin of 4.4%, slightly above analysts’ expectations of 4.2%.

The car parts supplier, which in May cut its earnings forecast to 4.7%-5.7% from 5.5-6.5%, confirmed the lower outlook in preliminary results ahead of its half-year report on August 9.

Second-quarter sales came in slightly above the first quarter’s 9.3 billion euros.

Sales in the [second quarter of last year](https://www.financedigest.com/ericssons-board-rebuked-by-shareholders-at-agm-for-second-year-in-a-row.html "Ericsson’s board rebuked by shareholders at AGM for second year in a row"), before the company spun off its powertrain division in September, reached 9.9 billion euros with a 7.2% margin.

Continental warned in March of a subdued start to 2022 and that [war in Ukraine](https://www.financedigest.com/ukraine-grants-citizenship-to-top-russian-journalist-who-denounced-war.html "Ukraine grants citizenship to top Russian journalist who denounced war") could have lasting consequences on its supply chain.

In April it said it was in talks with customers to raise prices to cover its own [rising costs](https://www.financedigest.com/suedzucker-quarterly-profits-surge-73-5-despite-cost-rise.html "Suedzucker quarterly profits surge 73.5% despite cost rise").

Automakers from Volkswagen to [BMW have reported lower](https://www.financedigest.com/bmw-bets-on-design-and-recycling-not-mining-to-lower-battery-costs.html "BMW bets on design and recycling, not mining, to lower battery costs") sales in the first half of this year, and Europe registered the lowest number of new car registrations since 1996.

Continental’s automotive group sector, which the company cautioned in April could [end up in the red this year](https://www.financedigest.com/analysis-investors-face-expensive-quest-for-year-end-cash-and-safe-assets.html "Analysis-Investors face expensive quest for year-end cash and safe assets"), reported a negative adjusted EBIT margin of -2.3%, while its tyres division reported its highest margin at 13.8%.

The company recognised impairments in the automotive sector of 370 [million euros](https://www.financedigest.com/amazon-grants-1-5-million-euros-to-dutch-seaweed-farm-project.html "Amazon grants 1.5 million euros to Dutch seaweed farm project"), it said, with an additional 75 million euros of assets in Russia subject to impairment due to sanctions, mainly in the tyre sector.

Adjusted free cash flow for the Group came in at minus 687 [million euros](https://www.financedigest.com/iag-agrees-to-buy-80-stake-in-air-europa-for-400-million-euros.html "IAG agrees to buy 80% stake in Air Europa for 400 million euros"), the supplier reported, well below an analysts’ consensus of minus 225 million euros.

($1 = 0.9766 euros)

(Reporting by Victoria Waldersee; editing by Miranda Murray and Jason Neely)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---