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Continental Quarterly Statement as at March 31 , 2021 First Quarter : Continental Achieves Good Result , Confirming its Course for the Future > Consolidated sales of € 10.3 billion ( Q1 2020 : € 9.9 billion , +3.5 percent ) ; organic growth of 8.6 percent > Adjusted EBIT of € 834 million ( Q1 2020 : € 433 million , +92.5 percent ) > Adjusted EBIT margin of 8.1 percent ( Q1 2020 : 4.4 percent ) > Net income of € 448 million ( Q1 2020 : € 292 million ) > Free cash flow before acquisitions and carve - out effects : € 670 million ( Q1 2020 : € 87 million ) > Realignment of the Automotive Technologies group sector > Spin - off of Vitesco Technologies planned for September 2021 > Outlook for fiscal 2021 for the continuing operations : consolidated sales of around € 32.5 billion to € 34.5 billion ; adjusted EBIT margin of around 6 to 7 percent Continental achieved a good result in the first quarter of 2021 in a persistently challenging market environment . At the same time , the mobility supplier pushed ahead with the implementation of its realigned strategy by making a number of key decisions . With the resolution of the Supervisory Board , the spin - off of Vitesco Technologies , i.e. primarily the Powertrain business area , draws nearer this year as planned . As a result , continuing operations and discontinued operations are reported separately . In the following , however , the Continental Group is considered as a whole . Furthermore , Continental will manage " Autonomous Mobility " and " Safety , " which are currently combined in one business area , as independent business areas starting January 1 , 2022. This will give us structural clarity while providing more entre- preneurial freedom to define the separate and diverse strategies . We are focusing systematically on growth and pioneering future technol- ogies when it comes to assisted , automated and autonomous driving . And we are focusing on value when it comes to safety . In view of the adverse effects of the coronavirus pandemic and the resulting tight global supply situation for semiconductors , it was a good start to the current fiscal year . The development of the business in China was particularly positive compared with the same quarter of the previous year , which was severely affected by the coronavirus pandemic . The tire business and the ContiTech business area stood out in particular . Overall , consolidated sales in the first three months of the year amounted to € 10.3 billion ( Q1 2020 : € 9.9 billion , +3.5 percent ) . Before changes in the scope of consolidation and exchange rate effects , sales rose by 8.6 percent . Adjusted EBIT increased year - on - year to € 834 million ( Q1 2020 : € 433 million , +92.5 percent ) , resulting in an adjusted EBIT margin of 8.1 percent ( Q1 2020 : 4.4 percent ) . Net income attributable to the shareholders of the parent totaled € 448 million ( Q1 2020 : € 292 million ) . In the first quarter , free cash flow before acquisitions and carve - out effects was € 670 million ( Q1 2020 : € 87 million ) . The improvement in free cash flow was due in particular to the low level of capital expenditure before financial investments , which accounted for 2.8 percent of sales in the first quarter . With regard to further business development , the market environment will remain very challenging in the coming months , because the global economy is only gradually getting back on track . This is due not least to the supply shortages of electronic components . Other factors include high market volatility due to the coronavirus pandemic and the increase in the prices of raw materials . In particular , the European car market , which is very important for Continental , is still well below its record level of 2017. Furthermore , the market has not yet returned to its level of 2019 . Strong regional differences in growth In the first three months , the development of automotive markets varied substantially throughout the world . The market development of passenger cars and light commercial vehicles in China was very strong ( 5.7 million units , +78.2 percent year - on - year ) . North America had a relatively weak start to the year compared to 2020 ( 3.6 million units , -4.5 percent year - on - year ) . In Europe , production of passenger cars and light commercial vehicles was on par with the low level of the previous year ( 4.6 million units , -0.3 percent year - on - year ; 1.0 million units of which were in Germany , -9.0 percent year - on - year ) . According to preliminary figures , global production of passenger cars and light commercial vehicles grew by 14.0 percent year - on - year in the first quarter to a total of 20.3 million units ( Q1 2020 : 17.8 million units ) . Pro- duction in the first quarter was thus substantially lower than in the first quarter of 2019 , when 22.9 million vehicles were produced .