Continental: tyres go flat on disappointing 2022 cash flow
(CercleFinance.com) - On Wednesday as part of its preliminary annual results Continental reported free cash flow that fell far short of expectations.
The German automotive supplier estimates that it generated adjusted cash flow of around 1.6 billion euros in Q4, i.e. a total of around 200 million euros for FY 2022.
For the record, the group set itself the target of achieving cash flow of 600 to 800 million euros over the past year, above the consensus of 550 million euros.
Consolidated sales are expected to to reach about 10.3 billion euros, bringing its total to 39.4 billion euros for the full year, in line with Conti's target range of 38.3-40.1 billion euros.
Meanwhile, the group's adjusted EBIT margin is expected to be close to 4.8% in Q4, i.e. 5% for FY 2022, towards the bottom of a target range of 4.7% to 5.7%.
Continental shares went flat as a result of these numbers, down 4% at lunchtime on Wednesday, the biggest faller out of the 40 stocks in the DAX index.
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