2023-04-27 20:15:46
Again only an online general meeting, and this time with considerable technical stress. Many Continental shareholders were annoyed with the way the shareholders’ meeting was held.
After extending his contract, Continental boss Nikolai Setzer got the group’s shareholders in the mood for a more stable remainder of 2023 – and at the same time indicated persistently high prices for automotive technology and tires. Regarding the talks with the supplier’s major customers, he said: “We’ll keep an eye on the issue in the coming months. Because inflation will remain – our negotiations too.” The cost pressure from transport and logistics, for example, is inconsistent, but is often still above the pre-corona level. Wage increases also played a role.
Before the online general meeting, which was characterized by a technical glitch, the supervisory board had appointed Setzer to the head of the Dax company for several more years. He is to lead Conti until March 2029.
Chief Financial Officer Katja Dürrfeld explained that in the core automotive business one still had to reckon with “significant price increases” for raw materials. With some microchips, on the other hand, the shortage is easing, but overall the following applies: “The semiconductor market as a whole represents a substantial challenge.” For 2023, Continental expects inflation effects of around another 1.7 billion euros. It is still unclear to what extent these could affect end customer prices.
The company management had expanded the supplier network in order to be less dependent on individual suppliers. Some raw materials are now obtained from alternative sources, says Setzer. In the case of semiconductor types that are particularly in demand, however, the situation will improve in 2025 at the earliest.
processing of the cyber attack
Several shareholder representatives asked about the status of the processing of the cyber attack from last autumn. Hackers had stolen 40 terabytes of data from Continental. There were no details on this, according to Dürrfeld the investigations are still ongoing. The costs have so far added up to a “low single-digit million amount”.
Christian Retkowski from the Investor Protection Association criticized the speed: “After more than ten months of forensic analysis, you cannot say what types of documents were stolen?” Conti must be aware of its responsibility as a pioneer in autonomous driving. Otherwise, in the case of IT hacks in car software, there could soon be “a lot of sharp weapons out in the open”.
The shareholders praised the employees and the management for the business results achieved in the past year, which according to the chairman of the supervisory board, Wolfgang Reitzle, was “again not easy”. Conti’s net profit shrank from around 1.4 billion euros (2021) to 67 million euros. However, high write-downs due to the rise in interest rates and the Russian sanctions also had an impact.
Management relatively optimistic for 2023
For 2023, the management is relatively optimistic, assuming an increase in global car production, sales and profit margin. A dividend of EUR 1.50 per share will be distributed, a reduction of 70 cents. The conversion and austerity course continues. A program is running at Conti until 2029, in the course of which a number of jobs will be lost. “From next year we want to save more than 850 million euros gross every year,” said Setzer.
Resentment arose because the general meeting was again only held digitally – with considerable technical difficulties. Transmission over the Internet broke off soon after it began. After a forced break of almost three quarters of an hour, filled with image videos, Reitzle had to present his report a second time, after he had previously justified the online version with the possibility of a “lively dialogue analogous to a face-to-face general meeting”.
A representative of the German Association for the Protection of Securities was annoyed: “The stream was a disaster, it shouldn’t be like that,” said Alexander von Vietinghoff-Scheel. Without a stable exchange, shareholder democracy is at risk. “We will reserve the right to take legal action for our members.”
Annual General Meetings continue to be “virtual”
The management apologized – and nevertheless asked the shareholders for the right to continue to hold general meetings “virtually” for an initial period of three years. In the end, like all the others, the proposal was approved by a large majority. As the only supervisor, Reitzle received less than 90 percent yes votes in the final discharge.
No substantive details were given on the status of internal investigations into possible Continental involvement in the VW diesel scandal or quality defects in air conditioning lines and hoses. The Group formed special committees for both topics. “These were and are special burdens,” said Setzer in general. “We draw conclusions.” From May, the previous Mercedes manager Olaf Schick will head a new department for integrity and law on the board.
On the other hand, there was news about plans in the USA. There, Conti wants to strengthen its future business with technologies for autonomous driving with another cooperation. The group entered into a partnership with Aurora Innovation, which offers highly automated systems for trucks and commercial vehicle fleets. (dpa)
#Continental #boss #eye #price #developments #free #press