FORT MILL, S.C. – March 14, 2021. Within a persistently turbulent market environment, Continental performed well and achieved a positive net income in 2021. According to preliminary figures, the DAX company’s consolidated sales totaled €33.8 billion in the past fiscal year (2020: €31.9 billion, +6.0 percent). Sales from the Tires group sector totaled €11.8 billion (2020: €10.2 billion, +16.2 percent).
Continental also continues its growth in the U.S. retread market with its ContiTread brand. Volume of retread tires grew by 2.5 percent CAGR from 2019 to 2021, based on preliminary figures. The retread market grew by 1.2 percent CAGR over the same time period. Continental is committed to further increasing its retread presence and offerings in the coming years.
“Retread is a key part of our strategy in the U.S. market,” confirmed Continental’s Tom Fanning, head of U.S. market for Truck Tires. “We continue to expand our ContiLifeCycle retread network to better serve our fleet customers across the country.”
For example, in October 2021, ContiLifeCycle partner CMC Tire opened new locations in Cheyenne, Wyo., and Loveland, Colo., as well as acquiring a location in Commerce City, a suburb of Denver, Colo., from Continental’s BestDrive. This expansion brings CMC Tire to 14 locations, enabling them to better service fleet customers throughout the western United States. CMC Tire has been part of the ContiLifeCycle network since 2015, and offers tires, retreads, and auto services. Continental is constantly optimizing its broad retread network in the U.S. which consists of both external and internal partners.
Continental’s commitment to retreading also provides sustainability improvements, in line with the company’s Vision 2030. Each retread tire saves almost 40 pounds of raw material, including rubber, steel, and carbon black, as well as 15 gallons of oil, according to the Retread Tire Information Bureau. The Bureau also calculates that retreading truck tires in the U.S. reduces carbon emissions by 396,000 tons annually, since the retreading process generates 70% less emissions than production of a new tire. Continental designs its commercial tire casings for retreading, helping to protect the environment and deliver the Lowest Overall Driving Cost for fleets and owner-operators.
For fiscal year 2022, Continental anticipates consolidated sales of around €38 billion to €40 billion and an adjusted EBIT margin of around 5.5 to 6.5 percent. For the Tires group sector, Continental expects sales of between around €13.3 billion and €13.8 billion with an adjusted EBIT margin ranging between 13.5 and 14.5 percent. This is an increase in Tires sales of 13 to 17 percent compared to fiscal year 2021.
Continental develops pioneering technologies to make commercial fleets safer, more efficient, and more connected. With innovative tire technology and digital fleet solutions, Continental optimizes tire lifecycle management to deliver the Lowest Overall Driving Cost to fleets and become the preferred partner to our independent tire dealers. Continental is currently one of the five largest brands in medium/heavy truck tires in the U.S. by market share.
Continental develops pioneering technologies and services for sustainable and connected mobility of people and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent, and affordable solutions for vehicles, machines, traffic and transportation. Continental generated sales of €37.7 billion in 2020 and currently employs around 235,000 people in 58 countries and markets. In 2021, the company celebrates its 150th anniversary.
The Tires business area has 24 production and development locations worldwide. Continental is one of the leading tire manufacturers with more than 56,000 employees and posted preliminary sales of €10.2 billion in 2020 in this business area. Continental ranks among the technology leaders in tire production and offers a broad product range for passenger cars, commercial and special-purpose vehicles as well as two-wheelers. Through continuous investment in research and development, Continental makes a major contribution to safe, cost effective and ecologically efficient mobility. The portfolio of the Tires business area includes services for the tire trade and fleet applications, as well as digital management systems for tires.
Continental develops pioneering technologies to make commercial transport safer, more efficient and more connected. The company’s products and services deliver measurable impact for commercial vehicle manufacturers and the aftermarket. They benefit from a broad portfolio and from fully integrated systems. The portfolio includes tires, digital tire monitoring, fleet management, telematic solutions, Electronic Logging Devices (ELD) and tachographs, hoses, air springs, Electronic Control Units (ECU), displays, drivetrain and exhaust aftertreatment systems, sensors, advanced driving assistance systems, as well as eHorizon maps and events and cloud-based services. In 2017, the share of Continental’s global sales for commercial vehicle products and systems was around €4.7 billion.