Conti could exceed earnings forecast

Hanover, Germany – Continental Corp. has announced a 14.1-percent net income increase year-on-year to €1.8 billion while its earnings per share climbed to €8.99 after €7.88 in the same period of the previous year. In a press release on 4 Nov, the automotive supplier, tire manufacturer and industrial partner confirmed its forecast for the current fiscal year after a solid third quarter.

"We are keeping our sights set firmly on our target for the adjusted EBIT margin, which we raised to around 11 percent after the first half of the year, and we even consider it realistic that we may slightly exceed this level at the end of the year," said Dr. Elmar Degenhart, chairman of Continental's executive board.

“Sales are expected to total approximately €34.5 billion this year, despite the negative exchange rate effects of €650 million that we recorded in the first nine months,” the Conti chairman reckoned.

Due to acquisitions and R&D expansion, the company increased the number of its employees to 189,361, some 11,600 more than at the end of 2013.

According to the statement, Conti’s automotive group generated sales of €15.5 billion in the first nine months of the current year. At 7.9 percent, the adjusted EBIT margin was exactly at the previous year's level of 7.9 percent.

During the same period, the rubber group generated a slight increase in sales to almost €10.2 billion achieving an adjusted 17.8% EBIT margin that was higher than the previous year's level of 17.0 percent.