Stablecoins are here to stay says BlackRock
Investing.com -- Continental (ETR:CONG) posted stronger-than-expected earnings for the first quarter, supported by cost-cutting measures, though the German auto parts supplier flagged growing risks from U.S. trade restrictions and tariffs.
“We made a solid start to the year,” said CEO Nikolai Setzer, commenting on the results. Still, the company noted that escalating trade barriers were not included in its full-year forecast and could weigh on economic conditions.
The company’s shares rose around 4% at the market open in Frankfurt.
Adjusted EBIT rose to €586 million for the quarter, up from €201 million a year earlier and ahead of the €485 million expected by analysts in a company-compiled consensus. The adjusted EBIT margin reached 6.0%, surpassing the 5.1% forecast.
“The quarterly results reflect our focus on improving our financial position – and show that our efficiency measures are paying off," said Continental CFO Olaf Schick.
Continental is moving forward with plans to streamline its operations, spinning off two of its three business units to concentrate on its tyre division. The restructuring is aimed at creating a more agile company in the face of a shifting global trade environment.
As part of this transition, the 2025 outlook has been adjusted to exclude the automotive division ahead of the anticipated spin-off later this year. The company expects lower revenue but stronger profitability.
“Geopolitical tensions and the potential impact of trade restrictions are causing a high degree of uncertainty about global economic development in the current fiscal year,” Continental said.
The tyre and ContiTech divisions are expected to generate sales between €19.5 billion and €21.0 billion, with an adjusted EBIT margin projected between 10.5% and 11.5%.