Conti targets 5% sales growth after robust 2014

Hanover, Germany -  Continental AG achieved higher sales and a margin exceeding 11 percent for its adjusted earnings (EBIT) in the 2014 fiscal year, the group announced 12 Jan.

The gains were achieved despite the pronounced weakness of Europe's replacement tire market in fourth quarter, Continental said in a press release on the preliminary key figures of its finances.

The Hanover-based group said that its sales grew in comparison with the previous year, reaching a figure of around €34.5 billion. Exchange rate effects amounting to around €500 million had a negative impact on sales.

The company said that it continued to progress "despite the weak growth in Europe, Russia, and South America. We achieved this in spite of the further uncertainty added to the already volatile market development as a result of considerable exchange rate fluctuations in some cases or, as seen recently, the drop in the price of oil."

"The adjusted EBIT exceeding  €3.8 billion is further proof of the outstanding performance achieved yet again by our more than 190,000 employees," said Continental chairman Dr. Elmar Degenhart during the announcement of preliminary key figures at the motor show FULL NAME in Detroit.

Stating that Continental expected a rise in global passenger car sales, the chairman said: "We are therefore aiming for sales growth of around 5 percent to a figure exceeding €36 billion.

With this, we want to once again securely confirm our double-digit adjusted EBIT margin," added Degenhart, also noting that the consolidation effects from the Veyance acquisition have not been taken into consideration in this outlook.

Continental will present its preliminary business figures on 5 March.