Conti posts strong tire, rubber growth

Hanover, Germany – Continental AG has posted a strong financial 2015, with sales climbing by around 14 percent to €39.2 billion and earnings (EBIT) by 23 percent year-on-year to €4.1 billion.

The tire division’s EBITDA rose to € 2.6 billion in 2015, up from €2.28 billion, while ContiTech’s earnings lifted from a prior-year €551 million to €577 million in 2015.

“Continental is in great shape. With our proven business model, we generated free cash flow before acquisitions of €2.7 billion in 2015,” said its executive board chairman Elmar Degenhart, presenting the preliminary figures in Hanover on 3 March.

“Backed by a strong financial position, we are tackling the major challenges ahead… which particularly include volatile markets, fluctuations in raw material prices and currency exchange rates,” he added.

For the current fiscal year, Continental anticipates a growth rate similar to that achieved in 2015.

“We expect organic growth of 5 percent to approximately €41 billion,” said CFO Wolfgang Schaefer, adding that Continental anticipated “only a moderate rise in global vehicle production of 1.5 percent to just under 90 million units”.

Weak development of the Russian and Brazilian markets, he said, are expected to be offset by growth in the vehicle markets in Europe and China.

Continental invested €2.2 billion in property, plant and equipment, and software in 2015. R&D expenses rose by 14.6 percent year-on-year to more than €2.4 billion, corresponding to 6.2 percent of sales, as in the previous year.