Continental to make automotive display division independent
BERLIN (Reuters) — Continental will make its user experience unit, which makes instrument panels and displays for vehicles, independent, opening up the option of a potential sell-off or change of ownership, the company said at a capital markets day on Monday.
The auto parts manufacturer was also exploring options for how to restructure further business activities within the automotive division worth 1.4 billion euros ($1.52 billion) in consolidated sales this fiscal year, it said, without providing details.
The group's main businesses are making tires, the automotive division, which comprises user experience as well as software safety features and autonomous driving technology and a third arm producing digital technologies for autos and other sectors called ContiTech.
Continental said in November it would cut thousands of jobs in the automotive division worldwide and reduce the number of business areas within the division from six to five.
Still, the division would remain within Continental, Chief Executive Nikolai Setzer said on Monday amid speculation about a wider restructuring at the firm.
«The automotive business is with us, it stays with us,» Setzer said at a media briefing.
Also on Monday, Continental said it was targeting an 8-11% adjusted margin on earnings before interest and taxes (EBIT) and 44 billion to 48 billion euros ($47.8-$52.18 bln) in total sales in the next 2 to 3 years, rising to 51 billion to 56 billion euros in 3-5 years.
Its 2023 outlook forecasts an adjusted EBIT margin of 5.5-6.5% on sales of 41 billion to 43 billion euros.
($1 = 0.9200 euros)
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