DGAP-News: Continental AG: Continental Expects 2012 Margin to Exceed Good Previous Year Level after Successful First Half-Year
(firmenpresse) - DGAP-News: Continental AG / Key word(s): Half Year Results
Continental AG: Continental Expects 2012 Margin to Exceed Good
Previous Year Level after Successful First Half-Year
02.08.2012 / 08:31
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- Automotive supplier lifts sales target to more than EUR32.5 billion
- Consolidated sales at EUR16.5 billion after six months
- Adjusted EBIT reaches EUR1.8 billion / 11.1% margin
- Investments for future growth intensified substantially
Hanover, August 2, 2012. In the second quarter, the Continental Corporation
nearly matched the dynamic level of the strong first quarter and sees
itself on track for another record year. 'Based on the successful first
half of the year, we are confident that we will comfortably achieve the
goals we have set for the year. Nonetheless, we must continue to keep a
close eye on the uncertainties on the global sales markets, the difficult
economic situation in some European Union member states and the slowdown in
global economic growth,' said Continental Executive Board Chairman Dr.
Elmar Degenhart on Thursday in Hanover.
'As a result of the good development in the first half of the year, we now
anticipate an increase in consolidated sales of more than 7% to over
EUR32.5 billion. In addition, we assume that the adjusted EBIT margin will
even top the very good level achieved in 2011. The reason for this
reassessment is the slightly lower negative impact from raw material costs,
which had recently increased heavily,' Degenhart explained. 'Despite record
investments of some EUR2 billion, the goal for the free cash flow remains
unchanged at more than EUR600 million.'
In the first six months of 2012, the international automotive supplier
increased its sales 10.9% year-on-year to EUR16.5 billion. At the same
time, EBIT rose almost 26% to EUR1.6 billion, with an EBIT margin of 9.7%,
against 8.6% a year ago. The corporation's adjusted EBIT, adjusted
particularly for acquisition-related amortization and special effects, rose
to more than EUR1.8 billion, up from just under EUR1.5 billion. The
adjusted EBIT margin is 11.1% after 10.0% a year ago.
In the first half of 2012, the net income attributable to the shareholders
of the parent rose nearly 47% year-on-year to EUR1 billion, corresponding
to earnings per share of EUR5.02 after EUR3.42 one year ago.
Despite a dividend payment volume of EUR300 million and substantially
higher investments, the Continental Corporation reduced its net
indebtedness year-on-year by EUR238 million. It was slightly higher than at
the end of 2011, rising by just under EUR104 million. 'Compared with June
30, 2011, we improved our equity by almost EUR1.5 billion to a good EUR8.3
billion and upped the equity ratio to more than 30% once again. This was
not the least reason that our gearing ratio improved to nearly 83% despite
the slight increase in net indebtedness as a result of seasonal factors.
The ratio was still 104% a year ago and 85% at the end of the first
quarter,' explained CFO Wolfgang Schäfer. 'We also improved our free cash
flow by nearly EUR90 million to EUR126 million in the first half of the
year compared to the first six months of 2011.'
The international automotive supplier spent almost EUR830 million on
investments in the first half of 2012, which is EUR210 million more than in
the same period of last year. 'We are thus fulfilling our promise to reduce
our indebtedness while at the same time paying dividends once again and
investing substantially in our profitable growth,' Schäfer stressed. The
capital expenditure ratio rose accordingly from 4.2% to 5.0%. In the Rubber
Group, it was as much as 6.7%, with the announced additional expenditures
for capacity expansion in the Tire Division making a major contribution to
this development.
As previously announced, Continental again created new jobs in the second
quarter. The company's workforce now totals nearly 169,000, which is 9,700
more than a year ago and 5,000 more than at the beginning of the year. In
Germany there were some 49,300 employees at the end of June 2012, 700 more
than a year ago.
Continental's Executive Board Chairman emphasized that, for the first time,
the Automotive Group posted half-year sales over EUR10 billion, after a
good EUR9 billion a year ago. 'At the same time, we slightly improved our
adjusted EBIT margin, which amounted to 8.1% after 8.0% a year ago,' said
Degenhart.
The Rubber Group recorded sales of a good EUR6.5 billion, which is another
new half-year record. 'The adjusted EBIT margin of 16.5% benefited from the
recent fall in raw material costs. But in view of the fact that price
increases must be anticipated again in the future, this level cannot be the
benchmark in the long term,' Degenhart concluded.
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 169,000 employees in
46 countries.
Dr. Felix GressThis press release is available in the following languages: Chinese,
Senior Vice Hannes Boekhoff
Vice President
Media
President
Corporate Relations
Continental AG
Vahrenwalder
Communications
Continental Str. 9
30165 Hanover, Germany
Phone/
AG
Vahrenwalder Str. 9
30165 Hanover, Fax: +49 511 938-1278 / -1016
E-mail:
Germany
Phone/Fax: +49 511 938-1485 corporate-media-relations(at)conti.de
/ -1055
E-mail: prkonzern(at)conti.de
German, English, French, Japanese, Portuguese (Brazil), Portuguese
(Portugal), Romanian, Russian, Slovakian, Spanish, Czech, Hungarian
Online Media Database: www.mediacenter.continental-corporation.com
Financial Reports: www.continental-ir.de
End of Corporate News
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02.08.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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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: MDAXListed: 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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180042 02.08.2012
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Datum: 02.08.2012 - 08:31 Uhr
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