German automotive parts maker Continental slipped to a loss in the first quarter of 2024, reporting that it went €53 million ($57 million) into the red, compared to a profit of €382 million last year.
This means the company ended up with a loss of €0.27 per share, in contrast to making a profit of €1.91 per share a year ago.
The adjusted operating result, or EBIT (earnings before interest and tax), was €196 million, which is 65.8% lower than the €574 million recorded last year.
The adjusted EBIT margin was 2.0%, down from 5.6% last year.
The company's consolidated sales stood at €9.8 billion, showing a decrease of 5% from the €10.3 billion reported a year ago.
Looking ahead, Continental expects its earnings to improve as the year progresses, especially in the second half of 2024 following a challenging first quarter.
The company foresees consolidated sales for 2024 to be between €41.0 billion and €44.0 billion, with an adjusted EBIT margin in the range of 6.0% to 7.0%.
Chief financial officer Katja Garcia Vila stated: "Despite the slow start to the year, we believe there are opportunities for growth in all sectors of the company. This is why we are maintaining our outlook for the fiscal year 2024."
Continental also predicts that the global production of passenger cars and light commercial vehicles in 2024 will be approximately the same as the previous year, fluctuating within a range of -1% to +1%.