Continental has reported an 8.2 per cent increase in consolidated sales at EUR9.3 billion in the first quarter of this year compared to sales of €8.6 billion.

Adjusted EBIT fell to EUR 439 million in the first quarter, as against EUR 728 million for the same period in the previous year.

The company said in a release that it reported strong tyre business despite an increasingly turbulent market environment. It said many external factors, such as the war against Ukraine, the coronavirus pandemic, electronic component shortages and cost increases in procurement and logistics, presented major challenges.

Nikolai Setzer, CEO, Continental, said, “The past quarter was overshadowed by the war against Ukraine and its drastic effects on already high energy prices and strained logistics chains and commodity markets. In addition, measures to contain the coronavirus pandemic, particularly in China, had an adverse effect on economic development. In view of the multiple challenges, we took various steps to minimise the impact on earnings.”

He added, “Price increases in procurement and logistics affected us significantly in the first quarter. Despite this considerable headwind, we achieved a good result in the tire business. For Automotive, we are confident that the measures taken will result in improved earnings over the course of the year.” 

Continental said it took immediate action to address the numerous challenges and effectively maintain production and supply chains. It further diversified raw material sources at an early stage, building up security stocks and reorganising its value chain in the electronics sector.

Continental said it was also working with its customers to share the burden of increased costs.

In the first quarter of 2022, Continental generated a net income of EUR 245 million compared to EUR 448 million for continuing and discontinued operations. Adjusted free cash flow was -EUR 174 million, as against EUR 646 million for continuing and discontinued operations. 

Katja Dürrfeld, CFO, Continental, said, “Adjusted free cash flow in the first quarter of this year was negative due primarily to higher procurement costs and inventory buildup. For the year as a whole, we anticipate an adjusted free cash flow of around EUR 0.6 billion to EUR 1.0 billion.”  

The higher inventories are the result of increased security stocks for raw materials and semi-finished products and the seasonal buildup in the tyre sector, it said. 

In the first three months of the year, global automotive production was significantly lower than in the first quarter of the previous year. The market for passenger cars and light commercial vehicles in Europe fell particularly sharply (3.8 million units, -19.1 per cent). North America also recorded a slightly weaker start to the year compared with the previous year’s quarter (3.6 million units, -1.8 per cent). In China, the production of passenger cars and light commercial vehicles was up year-on-year (6.1 million units, +6.1 per cent). According to preliminary figures, global production of passenger cars and light commercial vehicles fell by 4.5 per cent compared with the first quarter of 2021 to a total of 19.7 million units (Q1 2021: 20.7 million units).

The weak automotive production in conjunction with increasing procurement and logistics costs impacted the automotive group sector in particular. Its sales increased by 3.2 percent to EUR 4.2 billion. After adjusting for exchange-rate effects and changes in the scope of consolidation, it posted organic sales growth of -1.2 percent. The automotive group sector outperformed the market, with global automotive production falling by 4.5 percent in the first quarter of this year, the company claimed. Its adjusted EBIT margin was -3.9 percent. 

The tyres group sector achieved a good result, recording increased sales volumes in the car tyres and commercial-vehicle tyres replacement business compared with the previous year.

With sales of EUR 3.3 billion (Q1 2021: EUR 2.7 billion, +20.1 per cent), it achieved an adjusted EBIT margin of 17.1 percent (Q1 2021: 16.6 percent).  

It said market developments will continue to be characterised by high volatility in the coming months. 

After a production output of 77.1 million passenger cars and light commercial vehicles last year, Continental expects an increase of between 4 and 6 per cent for the year as a whole (previously: 6 to 9 per cent).

Negative effects from cost inflation for key inputs, especially for oil-based raw materials as well as for energy and logistics in tyres and ContiTech, continue to become significantly more material. 

Continental has also adjusted its outlook for the year as a whole, as reported on April 21, 2022. Consolidated sales are now expected to be around EUR 38.3 billion to EUR 40.1 billion (previously: around EUR 38 billion to EUR 40 billion), and the adjusted EBIT margin is expected to be around 4.7 to 5.7 per cent (previously: around 5.5 to 6.5 per cent). 

For the automotive group sector, Continental expects sales of around EUR 17.8 billion to EUR 18.8 billion (previously: around EUR 18 billion to EUR 19 billion) and an adjusted EBIT margin in the range of around -0.5 to 1 percent (previously: around 0 to 1.5 percent). This still includes higher procurement and logistics expenses of around €1 billion as well as additional expenses for research and development of around EUR 100 million in the Autonomous Mobility business area. For the tyres group sector, Continental expects sales of around EUR 13.8 billion to EUR 14.2 billion (previously: around EUR 13.3 billion to EUR 13.8 billion) and an adjusted EBIT margin of around 12.0 to 13.0 percent (previously: around 13.5 to 14.5 percent). (TT)

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Tegeta Green Planet opened the Light Vehicle Diagnostics course at Tegeta Academy with a presentation for attendees aged 17 to 33. Beyond their chosen vocational field, participants learned about automotive waste management and environmental responsibility.

Shalva Akhvlediani, the organisation’s director, outlined its activities and goals while emphasising Extended Producer Responsibility. The session examined how the automotive sector connects to environmental duty and why used tyres, waste oils and automotive batteries must be collected and managed properly.

Tyre management and RECSOL featured prominently. Attendees traced a used tyre’s path from collection to recycling and learned how waste becomes a source of new resources. RECSOL, Tegeta’s tyre recycling plant, is a significant infrastructure project in used tyre recycling, processing tyres into materials for various uses and supporting circular economy principles.

A core aim is a system where waste is not an endpoint but the starting point for new resources, which requires infrastructure alongside greater public awareness and information on proper disposal. For participants, the meeting linked professional education with environmental awareness, stressing that future automotive professionals should understand this responsibility early.

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Tyres Europe, alongside ACEA (the European Automobile Manufacturers’ Association) and CLEPA (the European Association of Automotive Suppliers), has dispatched a joint communication to EU decision-makers concerning the possible broadening of the Carbon Border Adjustment Mechanism (CBAM) to cover downstream goods. The move comes as trilogue discussions approach.

Tyre producers form part of an automotive value chain already bearing carbon-related expenses for steel and aluminium manufactured within Europe. The proposed expansion would draw additional products into the mechanism’s remit before the existing framework has demonstrated its effectiveness. Resulting costs and administrative requirements would land on downstream manufacturers, tyre makers included, with signatories cautioning that a conceptually sound regulatory effort could become an operational and financial strain.

Endorsing the mechanism’s aims, the signatories nonetheless urge a proportionate scope that shields the entire value chain from carbon leakage while preventing that risk from being pushed further downstream. They advocate extending the mechanism only where a material carbon-leakage danger is evidenced, and request that policymakers ease compliance demands, including via more fitting default values mirroring real production routes.

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NEXEN TIRE has extended its partnership with Zalgiris, reinforcing its commitment to basketball in Europe, particularly across the Baltic region. The renewal builds on a relationship that began in 2024 and reflects the company’s broader strategy of linking its brand to performance, innovation and mobility.

The tyre maker has pursued sports partnerships as a way to connect with fans, sharing in the passion and excitement of supporting favourite teams during major matches and memorable moments. It also values the teamwork, dedication and collective achievement that define team sports, using such ties to build authentic connections and deepen engagement in key European markets. Its collaboration with clubs including Zalgiris and FC Bayern München forms part of this approach.

Under the extended agreement, NEXEN TIRE will gain greater visibility among sports fans in the region. The partnership offers branding opportunities at Zalgirio Arena, such as synchronised on-screen advertising and promotion on LED stands near the court, in a position visible on television during EuroLeague and LKL home games.

The arrangement also includes a hospitality programme allowing NEXEN TIRE to welcome guests and business partners at Zalgiris home fixtures. Through the strengthened alliance, the company aims to share its passion with more fans while raising brand awareness across the region.

Ricky Lee, Managing Director, NEXEN TIRE Poland, said, “Our cooperation with Zalgiris has developed positively since 2024, and we are pleased to extend and strengthen this partnership. Basketball has a particularly strong following in the Baltic region, making Zalgiris an important partner as we continue to grow our presence and engage with fans. We look forward to supporting the team throughout the season and doing our best to create positive experiences for both the players and their passionate fans.”

Paulius Jankunas, President, Zalgiris, said, “We are delighted to continue our cooperation with NEXEN TIRE and build on the partnership we started two years ago. NEXEN TIRE brings extensive experience in sports marketing, and we are proud to work together on creating meaningful projects and experiences for our fans. We look forward to another successful period of cooperation and to welcoming NEXEN TIRE’s guests and partners to our games and events.”

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TBC Corporation, one of North America’s largest marketers of automotive replacement tyres through wholesale and franchise operations, has widened its tyre portfolio through the addition of four new lines under the Multi-Mile Tyres banner. Serving as a value step-up brand, Multi-Mile gives dealers a strong mix of broader product coverage and improved consumer advantages crafted to drive better retail margins, helping retailers offer greater value while lifting profitability. With this expansion, the portfolio now reaches over 85 percent of the vehicle market, offering dealers more ways to satisfy customer demand.

Among the additions are tyres built for rugged and mud terrain use, boasting self-cleaning treads that push out mud and stones alongside dependable traction both on and off the road. Also joining the range are commercial and C-metric speciality tyres tailored to heavy-duty regional and long-haul trucks, together with all-weather tyres that hold the 3-Peak Mountain Snowflake severe snow rating and are made for high mileage and consistent year-round use.

A prominent name in the replacement tyre segment, Multi-Mile carries cutting-edge touring, high-performance and broad-line tyres suited to passenger cars, light trucks and SUVs. Meanwhile, the upgraded Mile After Mile Protection Plan warranty now delivers broader coverage, adding three-year roadside assistance, a three-year road hazard protection plan and a 60-day ride guarantee on top of its extensive treadwear warranties.

Rachel Tibor, Chief Marketing Officer, TBC Wholesale, said, “For more than 70 years, Multi-Mile products have offered cost-efficient, reliable and durable tyre options that enhance safety and performance. With this expanded portfolio, Multi-Mile strengthens its position as a value step-up brand, giving dealers more opportunities to meet evolving consumer needs while offering a product mix designed to support stronger retail margins. We’re continuing our longstanding tradition of supplying the right products at the right time for every type of vehicle and application.”

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