By Maitane Sardon
Shares in Continental rose after the company posted third-quarter results ahead of expectations and confirmed its outlook for the full year.
The German car-parts and tire maker said sales came in at about 5 billion euros ($5.84 billion) in the third quarter, according to preliminary results. The figure beat consensus estimates of 4.9 billion euros, it said.
Shares were 7.4% higher at 58.72 euros in European morning trade Friday.
Continental, which is set to publish third-quarter figures on Nov. 6, said it expects the adjusted earnings before interest and taxes margin to be around 11.4% in the quarter, above a consensus forecast of 9.5%.
The tires business had a strong start to the winter, with preliminary sales of around 3.5 billion euros and an EBIT margin of around 14.3%, Continental said. The results almost completely offset the negative effects of lower volumes, exchange rates and U.S. tariffs, it said.
The strong results are due in part to a strong price/mix, with the solid momentum expected to continue into the fourth quarter, Deutsche Bank analyst Christoph Laskawi said. The beat is also positive for tire maker Pirelli, Laskawi added.
Continental's update came days after French peer Michelin issued a profit warning, citing worsening market conditions and a sharp decline in North America sales. Sales volumes in its North America business fell around 10% in the third quarter, Michelin said.
Continental and Michelin have a similar exposure to the Americas, which means Michelin's issues are likely internal rather than due to market conditions, and internal issues are more easily fixed, Jefferies analysts said in a research note.
Continental said it continues to expect group sales between 19.5 billion euros and 21 billion euros for the year, and an adjusted earnings before interest and taxes margin of between 10% and 11%.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
October 17, 2025 05:03 ET (09:03 GMT)
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