Continental earnings margin for 2022 near lower end of outlook, preliminary figures show

BERLIN (Reuters) - Continental reported a 5% adjusted earnings margin in 2022 in preliminary figures released on Tuesday, towards the lower end of its outlook, with sales of 39.4 billion euros ($42.55 billion).

In the automotive sector, the adjusted earnings margin was -0.2% for the year, but the fourth quarter was stronger with a 2.1% margin.

In the tires sector, the company reported a 13.1% annual margin but a slightly lower fourth quarter margin at 10.3%.

Higher production costs and restrictions in China due to COVID-19 pushed down margins in the ContiTech group sector, reaching 4.7% for the year, below the forecast of 6% to 7%.

The supplier said lower than expected cash flow resulted in adjusted free cash flow of around 200 million euros, far below its forecast of 600 million to 800 million euros.

($1 = 0.9260 euro)

(Reporting by Victoria Waldersee; editing by Jonathan Oatis)