German tyre and auto parts maker Continental has unveiled plans to list its automotive unit on the Frankfurt stock exchange by the end of 2025.
This move is also to make its original equipment solutions (OESL) division, which supplies rubber products to automotive manufacturers, an independent entity.
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The sales process for OESL is slated to commence in the first quarter of 2025.
The independent company will be led by Philipp von Hirschheydt, an executive board member at Continental since May 2023.
The company will present the proposal for the spin-off to the supervisory board in March 2025, with a decision to be made at the annual shareholders’ meeting scheduled for April 2025.
Preparations for the spin-off are expected to be completed by the third quarter of 2025.
Continental’s supervisory board chairman Wolfgang Reitzle said: “The Executive Board’s decision is an important milestone in steadily increasing the value of Continental.
“I firmly believe that the Automotive spin-off will unlock new strengths, because focused companies are more agile, especially in times of transformation. The entire Supervisory Board supports this ambitious plan.”
In the third quarter of 2024, Continental reported an increase in earnings, supported by cost-reduction measures that enhanced profitability.
The company’s Tyres group sector delivered strong adjusted EBIT, bolstered by improved business in Europe.
In the third quarter of 2024, Continental achieved consolidated sales of €9.8bn (Q3 2023: €10.2bn, -4.0%). Its adjusted operating result increased to €873m (Q3 2023: €642m, +36.0%), corresponding to an adjusted EBIT margin of 8.9% (Q3 2023: 6.3%).
