The following is a summary of the Continental Aktiengesellschaft (CTTAF) Full Year 2023 Earnings Call Transcript:
Financial Performance:
Continental Aktiengesellschaft reported FY sales of €41.4 billion, with organic growth of 6.9% and adjusted EBIT margin of 6.1%.
The company managed solid pricing management in all sectors contributing to profitability despite facing inflation.
The Tires business ended the year with a 13.6% adjusted EBIT margin result, supported by volume recovery in the replacement markets.
The full year EBIT performance was 1.9%, a 260 basis points increase from 2022.
Adjusted free cash flow for FY 2023 was €1.3 billion, slightly above the guided corridor.
Business Progress:
The company announced decisions to drive business forward and increase profitability: recalibrating the portfolio, transforming developed technologies, and initiating operational excellence measures.
For 2024, significant measures to adjust the portfolio have been started, including a planned carve-out of the underperforming Automotive business segment.
The company achieved strong organic growth across its business areas in Q4 and aims to maintain this momentum into 2024.
The focus is on innovative new products in areas on Autonomous Mobility business sector.
R&D efficiency will continue to be a main focus, with the goal of reducing the R&D to sales ratio to around 11% in the short-term and around 9% in the mid-term.
The company achieved €7.3 billion order intake for Q4, lifting the full year to more than €27 billion, with notable wins including €3.4 billion for Safety and Motion, and €1 billion for Autonomous Mobility.
More details: CONTINENTAL AG IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.