Continental Earnings: Currency Dents Results, Brings Down Revenue Guidance

Narrow-moat-rated Continental reported disappointing third-quarter earnings per share before special items of EUR 1.63, missing the EUR 1.87 FactSet consensus by EUR 0.24 but EUR 2.47 better than the EUR 0.84 loss a year ago as supply chain disruptions lessened but inflationary cost pressures and currency offset. Consolidated revenue missed consensus by 2% and slipped 2% to EUR 10.2 billion from EUR 10.4 billion last year, while organic revenue increased 3%. Automotive organic revenue increased 5%, flat with global light vehicle production. Tire organic revenue was nearly flat, up 0.3% even though volume slipped 3%, due to pricing and mix. ContiTech organic revenue rose 1% mostly on automotive volume growth and customer recoveries, but weaker industrial volume.