When People Talk about “Mobility of the Future,” They Mean Continental

“Autonomous driving, electric mobility and connectivity: We are the architects of an ecosystem of safe, clean and intelligent mobility. When people talk about the ‘mobility of the future,’ they mean Continental. We are supplying what others are still testing. Our solutions, components, and systems are already generating enhanced safety, efficiency and comfort in four out of five vehicles worldwide,” said Degenhart, underscoring the company’s strong position on the mobility market. He added: “Grip is one of our traditional key fields of expertise in the tire business. It is part of our corporate culture, and we transfer it even to our connectivity technology, providing dependable solutions to offer secure contact, from the road to the cloud, all from a single source like no other company.”

The DAX company’s unique technology portfolio once again helped it to grow at a faster rate than its markets in 2018. Continental’s organic sales growth was 3 percent. “Our growth is testament to the confidence our existing and many new global customers have in our innovation capacity. In addition, our net income of €2.9 billion was almost at a record level. That is a solid result given the disappointing market development in the past year,” remarked Wolfgang Schäfer, Continental’s CFO.

At around €1.9 billion, last year’s free cash flow, adjusted for acquisitions and funding of U.S. pension obligations, exceeded the modified expectations.

On this basis, the Continental Executive Board is proposing a €0.25 increase in the dividend to €4.75 per share for the past fiscal year. The proposal also takes into account the overall performance of the company in fiscal 2018. The shareholder payout of 32.8 percent is slightly above the top end of the set dividend payout corridor of between 15 and 30 percent of net income.

Fiscal 2019 has got off to a subdued start, as expected, due to continuing market uncertainty. Continental is reaffirming its preliminary guidance from early January. Accordingly, the Hanover-based technology company still expects sales of around €45 to €47 billion and an adjusted EBIT margin of approximately 8 to 9 percent. “The guidance for 2019 is based in part on the assumption that the global production volume of passenger cars and light commercial vehicles will be stable at 94 million. Production in the first half of the year is likely to be down on last year’s figure. In our eyes, risk factors include the unclear ramifications of economic development in China and the trade disputes between the U.S.A. and China and between the U.S.A. and Europe – and then there is also the unclear situation with Brexit,” Schäfer said.

In addition to the combustion engine business, the activities of Vitesco Technologies will also include all future business involving hybrid and electric drive systems as well as all current battery activities. Continental is a longstanding technology leader and innovation driver when it comes to electrification of the powertrain. It is one of the few system suppliers that is in a position to offer full electrification of the powertrain from one source – from the 48-volt system and the electric drive to the highly complex power electronics and the battery management system, through to the energy and thermal management systems.

Continental conveyor belts ensure that all types of goods remain mobile around the world. Take for example Sweden, where Continental conveyor belts are in service in the largest and most modern underground iron-ore mine in Kiruna, Sweden, and transport more than 27 million metric tons of iron ore each year.

Ever more often, conveyor belts like these are continuously monitored from afar with the help of integrated sensors. With the condition monitoring process, signs of wear and tear can be detected early on, making it possible to minimize machine downtimes. For Continental’s industrial specialist ContiTech, it will be normal in the industrial segment to bill mobility services on a precisely itemized basis by the service provided, thanks to these watchful eyes. After all, the more – and the further – these state-of-the-art conveyor belts transport the overburden, the greater the value created for customers and for Continental.