Aumovio goes public on September 18
Automotive supplier and tire manufacturer Continental is planning to float its largest division, Automotive, as an independent company called Aumovio on September 18. Olaf Schick, who will remain CFO of the Hanover-based DAX-listed company until the end of September, expressed confidence about the conditions for the spin-off when asked by Börsen-Zeitung. Continental shareholders, such as the Schaeffler family, which holds a 46% stake, will receive one Aumovio share for every two Conti shares.
„Cost discipline is working“
„We have a highly motivated management team, we have a real spirit of optimism in the automotive sector, and we have a good brand in Aumovio,“ said Schick. The Tübingen-born lawyer, who has been a member of the Continental Executive Board since May 2023 and will return to Mercedes-Benz in Stuttgart as a member of the Executive Board, highlighted further progress in improving earnings in the automotive sector. „We are seeing cost discipline that is working.“
In the automotive sector, Continental had repeatedly posted operating losses since 2018 in the wake of the downturn in the industry. The group is countering the slump in the automotive industry with cost-cutting measures in administration and research and development. According to the company, the workforce in the automotive division will shrink by 16,000 to around 86,000 employees between 2023 and the end of June 2025. The streamlining of business and administrative structures alone is expected to reduce costs by 400 million euros annually from 2025 onwards.
Order intake exceeds sales
Schick pointed to a „good order intake“ in the automotive sector, which at 5.7 billion euros in the second quarter exceeded sales, which fell by 5% (organic: -1.2%) to 4.7 billion euros. „The book-to-bill ratio is 1.2, which is important.“ The CFO added that at 1.4, the ratio of order intake to sales in the Chinese automotive business was „very good.“
The decline in sales exceeded market estimates. At the same time, adjusted operating profit (EBIT), which rose to 187 million euros (previous year: 145 million euros) in the second quarter without applying the IFRS 5 accounting standard in connection with the spin-off, was around 2% higher than analysts had expected on average. At 4% (2.9%), the adjusted EBIT margin reached the upper end of Continental's confirmed target range for 2025 of 2.5% to 4%. Taking into account the IFRS 5 rules and excluding write-downs since March from the business units earmarked for spin-off, the adjusted EBIT margin was 9%, according to the information provided.
„Positive momentum“
The Group emphasized that the Automotive division had significantly increased its earnings compared to both the same quarter last year and the successful start to 2025. Continental attributes the increase in earnings despite declining automotive markets in Europe and North America to sustainable price adjustments in addition to cost-cutting measures that have been implemented. The Automotive division is heading „with positive momentum toward the spin-off in September,“ said CEO Nikolai Setzer.
In addition to the outlook for the Automotive division, Continental also confirmed the reduced annual forecasts for the Tire and Contitech divisions announced at the Capital Markets Day on June 24. In both divisions, the company is aiming for improvements in the second half of the year compared with the second quarter. Excluding Automotive, the Group is aiming for sales of between 19.5 and 21 billion euros in 2025 and an adjusted EBIT margin of 10 to 11%. The Tire division is expected to achieve a margin of 12.5 to 14% – after 12.7 (13.2)% in the first half of the year. For Contitech, the Group is forecasting 6 to 7% after 5.6 (6.2)% in the first six months.
Focus on tires
Continental intends to finalize the announced sale of the Contitech business with rubber products for car manufacturers (OESL) in the third quarter. According to CFO Schick, the business, which generated sales of 1.9 billion euros in 2024, will be purchased by a financial investor. Following the planned sale of the remaining Contitech business in 2026, Continental intends to focus solely on the tire business.
