German carmaker Continental has announced earnings for 2021, after two years of losses, and forecast higher sales this year, while warning of the possible effects of the crisis in Ukraine.
He said he could face “permanent consequences” for supply chains, production and demand for what he describes as instability in Eastern Europe following Russia’s invasion of Ukraine.
Continental also said it was working to shift production from the Russian plant, where operation has been suspended. There are no factories in Ukraine.
It continues to expect a 6% -9% increase in global production of passenger cars and light commercial vehicles in 2022, expecting that this will increase its sales to 38-40 billion Euros, from 33.8 billion Euros in 2021, and will increase its margin to 5.5% -6.5%.
However, it expects a sluggish start to the year and an increase in the cost of supplies and logistics, by 2.3 billion euros.
The CEO stressed that the crisis with the processors will logically subside in the second half of 2022, but will need until 2023 to rebuild stocks.
The company said its prospects did not take into account the possible effects of the crisis in Ukraine, but added that a prolonged crisis could reduce sales and profits.
Continental announced net profits for 2021 of 1.5 billion Euros, slightly lower than the estimates for 1.7 billion Euros.
Source: Capital
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