DGAP-News: Continental sets new records and achieves continued fast and profitable growth
(firmenpresse) - DGAP-News: Continental AG / Key word(s): Preliminary Results
Continental sets new records and achieves continued fast and
profitable growth
01.03.2012 / 08:49
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Continental sets new records and achieves continued fast and profitable
growth
- Sales up 17% to EUR30.5 billion in the company's anniversary year
- Operating result (EBIT) grows twice as fast as sales to EUR2.6 billion
/ margin of 8.5%
- Adjusted EBIT of EUR3 billion / 10.1% margin
- Earnings per share more than double to EUR6.21 / proposed dividend of
EUR1.50
- Net indebtedness reduced to under EUR6.8 billion / gearing ratio 90%
- Outlook for 2012: Sales to rise by more than 5% to more than EUR32
billion
- Net indebtedness to fall below EUR6.5 billion
Hanover, Germany, March 1, 2012. The Continental Corporation set new
records in sales, operating results and net income in its anniversary year
2011. In the current fiscal year, the international automotive supplier
aims to increase sales by more than 5% while maintaining the high level
achieved for the adjusted EBIT margin. 'In 2011 we grew nearly twice as
much as the relevant markets in almost all business areas and generated a
sales increase of 17% to EUR30.5 billion. At the same time, our operating
result (EBIT) increased twice as fast as sales to approximately EUR2.6
billion. We significantly improved our EBIT margin from 7.4% in the
previous year to 8.5%. For the first time since 2006, all divisions were in
the black again despite of the acquisition-related write-downs that will
continue up to and including 2014,' said Continental's Chief Executive
Officer Dr. Elmar Degenhart on Thursday at the annual financial press
conference in Hanover.
'For the current fiscal year, we expect the corporation's sales to rise by
more than 5% to more than EUR32 billion. We are assuming here that global
production of cars with a total weight of up to six tons will increase from
around 76 million units to approximately 77 million units and that demand
on Continental's key replacement tire markets in the NAFTA region and
Europe will grow only slightly. At the same time, we aim to match the high
level of the adjusted EBIT margin from 2011 in 2012 as well,' said
Degenhart. 'In 2011, the year of the company's 140th anniversary, we
generated adjusted EBIT (adjusted in particular for acquisition-related
write-downs and special effects) of a good EUR3 billion and a margin of
10.1%, thus exceeding the forecast we issued at the beginning of 2010.'
The Continental Corporation more than doubled its profit, net income
attributable to the shareholders of the parent, to a good EUR1.2 billion in
2011. Earnings per share rose from EUR2.88 in the previous year to EUR6.21.
'On this basis, we will propose to the Annual Shareholders' Meeting in
Hanover on April 27, 2012 that a dividend of EUR1.50 per share be paid out
for fiscal 2011. In relation to the average share price in 2011, this
corresponds to a dividend yield of 2.6%. In this way, we wish to allow our
shareholders to participate in the company's success,' said Degenhart. The
dividend payout ratio relative to the net income attributable to
shareholders of the parent is 24.2%.
Chief Financial Officer Wolfgang Schäfer commented that Continental had
further reduced its level of debt as announced: 'We have reduced our net
indebtedness by another half a billion euros to roughly EUR6.8 billion. Our
free cash flow of approximately EUR491 million played an important role
here. Overall, we have therefore reduced our net indebtedness by more than
EUR4 billion within four years, chiefly as a result of our operational
strength, despite considerable negative influences from the financial and
economic crisis in 2008/09 and enormous increases in commodities prices,
which cost us around EUR1.5 billion in total in 2010 and 2011,' explained
Schäfer. 'This year we intend to reach a level of net indebtedness below
EUR6.5 billion despite resuming dividend payments. We are planning a free
cash flow of more than EUR600 million. Our ratio of net indebtedness to
EBITDA (leverage ratio) is currently already 1.6 and is thus at a level of
creditworthiness typical for companies classified in the investment grade
category.'
In fiscal 2011, the ratio of net indebtedness to equity (gearing ratio)
improved to 90% at the end of 2011 after 118% at the end of 2010 and 219%
at the end of 2009. 'Our next goal is now to get to below 60% in the medium
term. We are also aiming for an equity ratio of between 30% and 35%. With
equity of a good EUR7.5 billion, we achieved an equity ratio of 29.0% in
the past fiscal year, after 25.4% at the end of 2010 and 17.6% at the end
of 2009,' said Schäfer. 'We also created value for the second consecutive
year. At 16.2%, the return on capital employed (ROCE) was not only
considerably higher than the previous year's level of 12.4%, but also
significantly higher than the cost of capital, which amounts to a
multi-year average of around 10% for our company.'
The company's rapid growth is also reflected in the number of employees,
which rose by almost 30,000 from 134,000 in the crisis year 2009 to around
164,000 in 2011 - a good 15,000 more than in 2010.
The planned growth is supported by the rapid development and large-scale
marketing of innovations. With continued increases in expenses for research
and development, the company intends to remain at the forefront: 'We spent
EUR1.6 billion on our innovation centers, again roughly 10% more than in
the previous year, thus reaching a record level. In relation to sales, this
corresponds to a healthy 5.3%, with the Automotive divisions accounting for
the lion's share with just under EUR1.4 billion and a ratio of 7.5%. A
total of EUR1.7 billion is budgeted for this year,' said Degenhart.
'But it is not only expenditure on research and development that we intend
to use to secure our above-average growth. Our rate of capital expenditure
also remains high: we invested EUR1.7 billion in property, plant and
equipment and software, more than ever before in the company's history.
This corresponds to a ratio of 5.6%. In the current year, we will
systematically put our growth plans into action with a capital expenditure
ratio of over 6%. We are essentially aiming for sales growth that is
roughly five percentage points higher than the growth of our reference
markets,' explained Continental's CEO.
With sales of EUR30.5 billion in 2011, Continental is among the leading
automotive suppliers worldwide. As a supplier of brake systems, systems and
components for powertrains and chassis, instrumentation, infotainment
solutions, vehicle electronics, tires and technical elastomers, Continental
contributes to enhanced driving safety and global climate protection.
Continental is also an expert partner in networked automobile
communication. Continental currently has approximately 164,000 employees in
46 countries.
Dr. Felix GressMedia database: www.mediacenter.continental-corporation.com
Senior Vice President Hannes Boekhoff
Vice President Media
of Corporate Relations
Continental AG
Vahrenwalder
Communications
Continental Straße 9
30165 Hanover Germany
Phone:
AG
Vahrenwalder Straße 9
30165 Hanover +49 (0) 511 938-1278
Fax: +49 (0) 511
Germany
Phone: +49 (0) 511 938- 938-1016
Email: corporate-media-
1485
Fax: +49 (0) 511 938-1055
Email: relations(at)conti.de
prkonzern(at)conti.de
Financial reports: www.continental-ir.de
Continental Corporation (in EUR millions) 2011 20101 Excluding write-downs of investments
Sales 30,504.9 26,046.9
EBITDA 4,228.0 3,587.6
in % of sales 13.9 13.8
EBIT 2,596.9 1,935.2
in % of sales 8.5 7.4
Net income attributable to the shareholders of the
parent 1,242.2 576.0
Earnings per share (in EUR) 6.21 2.88
Research and development expenses 1,608.7 1,450.4
in % of sales 5.3 5.6
Amortization and depreciation1 1,631.1 1,652.4
- thereof impairment2 20.4 57.7
Operating assets (as of December 31) 16,198.6 15,282.8
EBIT in % of operating assets (as of December 31) 16.0 12.7
Operating assets (average) 16,019.0 15,580.0
EBIT in % of operating assets (average) 16.2 12.4
Capital expenditure3 1,711.3 1,296.4
in % of sales 5.6 5.0
Number of employees (as of December 31)4 163,788 148,228
Free cash flow 490.5 566.9
Net indebtedness 6,772.1 7,317.0
Gearing ratio in % 89.8 118.0
Total equity 7,543.3 6,202.9
Equity ratio in % 29.0 25.4
Dividend per share in EUR 1.50 -
Adjusted sales5 30,192.7 26,043.0
Adjusted operating result (adjusted EBIT)6 3,043.0 2,521.1
in % of adjusted sales 10.1 9.7
2 Impairment also includes necessary reversals of impairment losses.
3 Capital expenditure on property, plant and equipment and software.
4 Excluding trainees
5 Before changes in the scope of consolidation
6 Before amortization of intangible assets from the purchase price
allocation (PPA), changes in the scope of consolidation, and special
effects.
End of Corporate News
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01.03.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Continental AG
Vahrenwalder Straße 9
30165 Hannover
Germany
Phone: +49 (0)511 938-1068
Fax: +49 (0)511 938-1080
E-mail: ir(at)conti.de
Internet: www.conti.de
ISIN: DE0005439004
WKN: 543900
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg,
Hannover, Stuttgart;Freiverkehr in Berlin, Düsseldorf,
München; Terminbörse EUREX; Luxembourg, SIX
End of News DGAP News-Service
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