Hanover, Germany – Continental AG has raised its earnings forecast for the full fiscal year 2015 after posting a “successful first half”, the German company announced 4 Aug.
“Due to the continued, better-than-expected development in prices for crude oil and natural rubber (TSR 20), we are raising our forecast for the Rubber Group from more than 15 percent to around 16 percent,” said the Conti half-year financial results.
The company said that it was increasing its estimate for the positive effect from lower raw material costs from around €150 million to about €200 million in the current year. This, it added, relates mainly to the Rubber Group.
“We are lowering our estimate for the average price of natural rubber again, from $1.62 (€1.47) per kg to $1.58 per kg. By contrast, we are slightly raising our forecast for the average price of butadiene, a base material for synthetic rubber, from $0.95 per kilogram to $1.00 per kg,” the company explained.
The Rubber Group Division generated sales of €7.7 billion in the first half of 2015 and improved its adjusted EBIT margin by 1.3 percentage points, year-on-year, to 18.6 percent.
The tire division, said the report, posted a 7.2-percent rise in sales at €5,064 million, compared to the first half-year of 2014 at €4,724 million.
Compared with the same period last year, the tire division’s earnings rose by 14.6 percent to €135 million.