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.
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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.