Continental AG – Company Strategy & Performance Analysis

Continental AG (Continental) manufactures brake systems, powertrains components, chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers. It also specializes in the production and development of networked active and passive safety systems, engine systems, actuators, infotainment, and telematics, air spring systems, intelligent transportation systems, and sensor technology.

The company’s products are offered under the ATE, VDO, Uniroyal, Phoenix, Barum, Benecke-Kaliko, Continental, ContiTech, Euzkadi, General Tire, Mabor, Matador, and Paguag brands. Continental has operations in several countries across Africa, Asia, Australia, Europe, Latin America, Canada and the US. The company is headquartered in Hanover, Germany.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading automotive companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. It benchmarks company performance against key indicators, including sales units, production units, operating income, net income, and total revenue.

Key highlights

Growth in the sales of electronic brake systems, air bag control and advanced driver assistance systems

Chassis and safety segment reported revenue of US$9,906.1m for FY2016 in comparison to US$9,355.8m in FY2015, growth of 5.9%. This increase in revenue was due to increased sales volumes of electronic brake systems, air bag control and advanced driver assistance systems. The company’s strong focus on increasing the global market penetration of the electric parking brake and electronic brake systems supported this growth.

Improved powertain segment revenue due to increases in sales of engine systems and sensors and actuators

The powertain segment reported revenues of US$7,982.8m in FY2016, in comparison to US$7,764.8m in FY2015, a growth of 2.8%. The segment accounted for 17.8% of the company's total revenue in FY2016. The increase was due in part to an increase in the sales volumes of engine systems, sensors and actuators and fuel and exhausts.

Increase in the sale of instrumentation and the driver HMI business unit

The interior segment revenues rose by 1.6%, from US$9,041.8m in FY2015 to US$9,187.5m for FY2016. This was due to an increase in instrumentation sales and the sale of the and driver HMI business unit. The company’s focus on expanding digitalized, intelligent mobility with software-based services and combined functional and control systems for specific vehicle requirements supported the growth.

Scope

– Company Snapshot: Details Continental's key indicators and rankings in terms of revenue, sales and production units.

– Company SWOT Analysis: Outlines Continental's strengths, weaknesses, and the opportunities and threats facing the company.

– Growth Strategies: Provides an overview of Continental’s corporate goals and strategic initiatives and evaluates their outcomes.

– Company Performance and Competitive Landscape: Analyses the company’s performance by geographical segment and provides a peer comparison on parameters such as revenue and market share.

– Key Developments: Showcases Continental's recent corporate events and initiatives.

– ICT Spending Prediction: Details how the company allocates its ICT budget across the core areas of its business, specifically hardware, software, IT services, communications and consulting.

Reasons to buy

- How does Continental ranks among its peers in terms of revenue and market share?

- What are Continental main growth strategies and how successful has the company been at implementing them?

- How has the company performed since 2014?

- How has Continental performed in comparison to its main competitors?

- What are Continental’s strengths and weaknesses and what are the opportunities and threats it faces?

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