DGAP-News: Continental AG: Successful Start Boosts Confidence at Continental: 'We will comfortably reach our targets.'
(firmenpresse) - DGAP-News: Continental AG / Key word(s): Quarter Results
Continental AG: Successful Start Boosts Confidence at Continental: 'We
will comfortably reach our targets.'
03.05.2012 / 08:39
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- Automotive supplier increases sales by 13.3 percent to EUR8.3 billion
- EBIT rises to EUR766 million / 9.2 percent margin
- Adjusted EBIT grows to EUR875 million / margin at 10.6 percent
- Net indebtedness improves significantly compared with previous year's
quarter
- Net income at EUR483 million / EUR2.41 per share
Hanover, May 3, 2012. For the third year in a row, the Continental
Corporation got off to a good start in the first three months of 2012. In
terms of sales and EBIT, the first quarter again set a new record in the
company's history. 'The excellent start to the new year makes us optimistic
about meeting the goals we have set for ourselves for the year. We intend
to increase our sales by more than 5 percent to over EUR32 billion, realize
an adjusted double-digit EBIT margin, and further reduce net indebtedness
to under EUR6.5 billion,' noted Continental CEO Dr. Elmar Degenhart in
Hanover on Thursday.
In the first three months of 2012, the international automotive supplier
increased its sales - year-on-year - 13.3 percent to more than EUR8.3
billion. At the same time, EBIT rose almost 21 percent to EUR766 million,
with an EBIT margin of 9.2 percent, against 8.6 percent a year ago. The
Corporation's adjusted EBIT, adjusted particularly for acquisition-related
amortization and special effects, rose to EUR875 million, after EUR734
million last year. The adjusted EBIT margin is 10.6 percent, after 10.0
percent a year ago.
In the first quarter of 2012, net income attributable to the shareholders
of the parent rose a good 31 percent year-on-year to approximately EUR483
million, corresponding to earnings per share of EUR2.41 after EUR1.84 one
year ago.
The Continental Corporation reduced net indebtedness by EUR764 million in
comparison with the same quarter the previous year. Due to seasonal
effects, the indebtedness was EUR69 million higher than at the end of 2011.
The rise was much lower than what is standard for a first quarter. The
gearing ratio at the end of the first quarter of 2012 thus improved to 85
percent, as against 117 percent one year ago and 90 percent at the end of
2011.
'In the meantime, the consistent reduction in our indebtedness is also
having a noticeable positive effect on our interest expenses, which, at
EUR145 million, were down by about EUR38 million year-on-year,' remarked
Continental's CFO Wolfgang Schäfer. 'In addition to the lower net
indebtedness, the fact that the interest margins are down on a year-on-year
basis contributed to this development. We are enjoying the payoff of having
established a link between interest margins and the ratio of net
indebtedness to EBITDA. The leverage ratio, which is also important for our
rating, was a bit over 1.5 at the end of the first quarter. We want to be
below this value at the end of the year.' Schäfer went on to point out that
the company had liquidity reserves totaling nearly EUR3.7 billion at its
disposal on March 31, 2012. These consisted of EUR1.3 billion in cash and
cash equivalents, as well as EUR2.4 billion in unused credit lines.
In the first quarter of 2012, Continental created around 3,400 new jobs and
thus now has approximately 167,000 on its payroll - 12,400 more than one
year ago. 'If the positive production trend continues in the automobile
industry, we will create thousands of jobs worldwide this year as well,'
said Degenhart.
The CEO also stressed that once again both the Automotive Group and the
Rubber Group contributed to the corporation's growth. Year-on-year, first
quarter sales in the Automotive Group were up approximately 12 percent to
just under EUR5.1 billion. Adjusted EBIT of EUR403 million was reported
(EUR359 million one year ago). The Rubber Group posted sales of nearly
EUR3.3 billion, representing an increase of approximately 15 percent. In
the first quarter 2012, adjusted EBIT amounted to EUR494 million, topping
EUR397 million for the same quarter a year ago. Quarterly earnings in the
Automotive Group were weighed down by higher costs for rare earths, whereas
the negative effects emanating from the recent spike in oil prices will
themselves itself felt in the Rubber Group only as the current year
progresses.
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 167,000 employees in
46 countries.
Dr. Felix GressThe press release is available in the following languages: Chinese, German,
Senior Vice Hannes Boekhoff
Vice President for
Presidentof Corporate Media Relations
Continental
Communications
Continental AG
Vahrenwalder Str. 9
30165 Hanover,
AG
Vahrenwalder Str. 9
30165 Hanover, Germany
Phone: +49 511 938-1278
Fax:
Germany
Phone: +49 511 938-1485
Fax: +49 511 938-1016
E-Mail: corporate-
+49 511 938-1055
E-Mail: media-relations(at)conti.de
prkonzern(at)conti.de
English, French, Japanese, Portugese (Brazilian), Portugese (Portugal),
Romanian, Russian, Slovakish, Spanish, Czech, Hungarian
Media database on the Internet: www.mediacenter.continental-corporation.com
Interim financial reports: www.continental-ir.com
End of Corporate News
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03.05.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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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
Indices: MDAX
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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