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Continental Quarterly Statement as at September 30 , 2021 Third Quarter : Continental Sets Course for Next Successful Chapter in its History > Continental accelerates market - oriented realignment in its anniversary year > Semiconductor shortage likely peaked in the third quarter > Automotive Technologies particularly affected due to high share of electronics > Rubber Technologies posts robust earnings thanks to replacement and industrial businesses > Spin - off of Vitesco Technologies successfully completed > Consolidated sales of € 8.0 billion ( Q3 2020 : € 8.7 billion , -7.4 percent ) ; organic growth of -8.5 percent > Adjusted EBIT of € 419 million ( Q3 2020 : € 727 million , -42.4 percent ) > Adjusted EBIT margin of 5.2 percent ( Q3 2020 : 8.4 percent ) > Net income of € 309 million ( Q3 2020 : - € 719 million , up € 1.0 billion ) > Free cash flow before acquisitions , divestments and carve - out effects for continuing and discontinued operations : € 12 million ( Q3 2020 : € 1.8 billion , down € 1.8 billion ) > Outlook for fiscal 2021 : consolidated sales of around € 32.5 billion to € 33.5 billion ; adjusted EBIT margin of around 5.2 to 5.6 percent In the third quarter of its 2021 anniversary year , Continental set the strategic course for the next successful chapter in its history by mak ing its previously announced structural adjustments . At the same time , the delivery situation for electronic components worsened . This had a significant impact on sales and earnings , which was only partially offset by the positive trend in sales volumes of replacement and industrial products . The Rubber Technologies group sector achieved robust earnings despite the mounting burdens associated with rising raw material prices and energy and logistics costs , thanks primarily to the strong replacement - tire business and the industrial product business of ContiTech . Though the global semiconductor shortage worsened in the third quarter due to the coronavirus crisis in Southeast Asia , it has likely reached its peak . The Automotive Technologies group sector , whose product portfolio comprises a high share of electronics , was the most affected . Although Continental expects the supply situation to improve in the coming months , the semiconductor shortage and rising procurement costs are likely to continue to have a negative impact on the automotive industry in the fourth quarter of this year and throughout 2022 . Continental successfully completed the spin - off of Vitesco Technologies in the past quarter . The carrying amount of the spun off net assets amounted to € 2.8 billion . The disposal posting was made against the liability from non - cash dividends - updated to be equivalent to the carrying amounts - that was recognized pursuant to the resolution of the Annual Shareholders ' Meeting on April 29 , 2021. As a result , reporting is generally based on continuing operations . As part of the new structure announced on September 30 , 2021 , the Tires and ContiTech business areas ( currently consolidated in the Rubber Technologies group sector ) will become independent group sectors with effect from January 1 , 2022. At the same time , Conti nental will comprehensively realign the Automotive Technologies group sector ( from 2022 : Automotive ) and create five dynamic , flexible business areas whose structure will be geared to the strategic action fields and market development of Automotive Technologies . Consolidated sales down year - on - year in the third quarter At € 8.0 billion , consolidated sales were down year - on - year in the third quarter ( Q3 2020 : € 8.7 billion , -7.4 percent ) due to significantly lower vehicle production . Before changes in the scope of consolidation and exchange - rate effects , sales fell by 8.5 percent . Adjusted EBIT decreased year - on - year to € 419 million ( Q3 2020 : € 727 million , -42.4 percent ) . This resulted in an adjusted EBIT margin of 5.2 percent ( Q3 2020 : 8.4 percent ) . Net income totaled € 309 million ( Q3 2020 : - € 719 million ) . Free cash flow before acquisitions , divestments and carve - out effects for continuing and discontinued operations amounted to € 12 million in the third quarter ( Q3 2020 : € 1.8 billion ) . Global automotive production lower than previous year's quarter Global automotive production suffered from the shortage of semiconductors and therefore did not reach the level of the previous year's quarter . The supply of components was the limiting factor , with customer demand remaining very high . According to preliminary figures , global automotive production amounted to 16.5 million units from July to September 2021 , down nearly 20 percent from the same period of the previous year ( Q3 2020 : 20.5 million units ) . In North America , production figures fell by around 25 percent to 3.0 million units ( Q3 2020 : 4.0 million units ) , in Europe by roughly 30 percent to 3.0 million units ( Q3 2020 : 4.3 million units ) and in China by around 17 per cent to 5.3 million units ( Q3 2020 : 6.4 million units ) .