German auto supplier Continental is targeting an increase in sales and earnings for the financial year 2024.

It expects consolidated sales in the year to reach between around 41 billion euros ($44.86 billion) to 44 billion euros and its adjusted earnings before interest and tax margin to stand at around 6 to 7 percent.

Continental released the targets at its annual press conference held last week, where the company gave financial results of the year 2023.

Last year, its consolidated sales reached 41.4 billion euros, up 5.1 percent year-on-year. Its adjusted EBIT was 2.5 billion euros, corresponding to an adjusted EBIT margin of 6.1 percent.

It said all its three group sectors contributed to the improved adjusted EBIT margin.

The company's net income soared to 1.2 billion euros in 2023, up 1,635 percent year-on-year, and the adjusted free cash flow was 1.3 billion euros, up 547 percent year-on-year.

The past fiscal year posed major challenges for Continental with geopolitical uncertainties, persistent strains on the supply of semiconductors, and inflation, said CEO Nikolai Setzer at the annual press conference.

"We achieved our goals for 2023 and made improvements toward achieving our midterm targets, despite the challenging conditions. In 2024, we will once again tackle the challenges facing us head on and pursue our goals for the year with determination," he said.

In 2024, Continental expects the global production of passenger cars and light commercial vehicles to grow no more than 1 percent from 2023. It is also likely that the production will fall by 1 percent.

Last year, global production increased by almost 10 percent compared with 2022 to more than 90 million vehicles. For the global tire replacement business, the company expects sales volumes to grow by 0 to 3 percent.