German car parts supplier Continental revealed a surge in its fiscal 2023 net income attributable to the shareholders to €1.16 billion ($1.26 billion) on Thursday. This compares to the previous year's €66.6 million.
Earnings per share were €5.78, up from the prior year's €0.33. Adjusted operating result, or adjusted EBIT, climbed 31.6% from last year to €2.52 billion, corresponding to an adjusted EBIT margin of 6.1%, up from 4.9% last year.
All three group sectors contributed to the improved adjusted EBIT margin.
Continental achieved consolidated sales of €41.42 billion, a growth of 5.1% from last year's €39.41 billion. Adjusted sales increased 5% to €41.3 billion.
The Continental executive board will propose a €0.70 increase in the dividend to €2.20 per share for the past fiscal year.
Looking ahead for fiscal 2024, Continental anticipates consolidated sales of around €41 billion to €44 billion and an adjusted EBIT margin of around 6% to 7%.
The automotive group sector is expected to generate sales of around €20 billion to €22 billion and an adjusted EBIT margin of around 3% to 4%.
For the current fiscal year, the company is targeting an increase in sales and earnings, with the margin expected to improve further, particularly in the automotive group sector, thanks mainly to the cost-cutting measures, price adjustments, and efficiency improvements adopted last year.
The goal is also to achieve above-market growth.