DGAP-News: Continental AG: Continental Raises Target for Adjusted EBIT Margin for 2013 to at Least 10.5%
(firmenpresse) - DGAP-News: Continental AG / Key word(s): Quarter Results
Continental AG: Continental Raises Target for Adjusted EBIT Margin for
2013 to at Least 10.5%
07.11.2013 / 09:17
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* Sales grow to almost EUR25 billion after nine months
* Adjusted EBIT amounts to approximately EUR2.8 billion; adjusted EBIT
margin at 11.3%
* Consolidated sales to rise to around EUR33.5 billion in 2013
Hanover, November 7, 2013. Based on a positive overall performance in the
first nine months, Continental is raising its forecast for the adjusted
EBIT margin from more than 10% to at least 10.5% for the current year. In
addition to the good operating performance, the development of raw material
prices was also a key factor, with prices for synthetic rubber in
particular rising less steeply than expected. 'Despite the weaker European
automotive market, we continued on our successful path. In the meantime,
however, we are experiencing a stabilization of the business trend in
Europe,' explained Chairman of the Executive Board Dr. Elmar Degenhart on
Thursday at the presentation of the business figures for the first nine
months. At the same time, he indicated that consolidated sales for the year
as a whole would increase to around EUR33.5 billion. This increase would be
slightly lower than the original assumptions, due to the unexpectedly high
appreciation of the euro against many other currencies.
In the first nine months of this year, consolidated sales of the
international automotive supplier, tire manufacturer and industry partner
rose by 1.2% year-on-year to approximately EUR25 billion. The operating
result (EBIT) increased by 4.0% year-on-year to more than EUR2.5 billion as
at September 30. This corresponds to a margin of 10.1% after 9.8% in the
previous year. The adjusted operating result (adjusted EBIT) increased by
3.1% in the first three quarters as compared to the same period of the
previous year and amounted to EUR2.8 billion. At 11.3%, the adjusted EBIT
margin was higher than its level of 11.0% after the first nine months of
2012.
Net income attributable to the shareholders of the parent increased by 8.5%
in the first nine months of this year to nearly EUR1.6 billion. Earnings
per share rose to EUR7.88 after EUR7.26 in the same period of the previous
year.
Continental reduced its net indebtedness by more than EUR1.2 billion
year-on-year to just below EUR5.6 billion. The gearing ratio therefore
improved to 61.6% after 87.1% in the previous year. 'In recent years, we
have constantly worked to reduce our net indebtedness and thereby further
improved our key financial figures,' summed up Wolfgang Schäfer, Chief
Financial Officer of Continental AG. 'This consistent work is now bearing
fruit, as reflected not least in the latest assessments by the rating
agencies. We have thus set the course for favorable financing options in
the long term,' he added. Continental's credit rating was classified as
'investment grade' by the rating agency Fitch in July, followed by Moody's
in mid-September.
In the first three quarters, Continental improved its free cash flow by
EUR246 million to EUR414 million. This increase was boosted by the sale of
the shares in S-Y Systems. 'For the year as a whole, we are anticipating a
free cash flow of at least EUR800 million,' said Schäfer.
At EUR416 million, interest expense was slightly lower than the previous
year's figure of EUR432 million, although this year's figure is negatively
impacted by interest expenses for the early redemption of the bonds issued
three years ago. 'The redemption of the bonds we issued in 2010 and the
issuance of three new bonds with considerably lower interest coupons in
recent months will save us more than EUR100 million in interest expense
each year starting from 2014,' explained Schäfer.
In the first three quarters of this year, the Continental Corporation
invested a total of approximately EUR1.3 billion in property, plant and
equipment, and software. This resulted in a capital expenditure ratio after
the first nine months of 5.4% compared with 5.1% in the same period of the
previous year. Research and development expenses in the period from January
to September amounted to just short of EUR1.5 billion, equivalent to 5.9%
of sales as compared to the previous year's ratio of 5.5% of sales. 'We are
continuing to invest heavily in the future potential of our company. This
is confirmed by our continued high rate of capital expenditure and the
slight increase in expenses for research and development,' emphasized
Degenhart.
As of the end of the third quarter, Continental had 177,387 employees,
corresponding to a rise of more than 7,700 people in comparison to the end
of 2012. This increase is mainly attributable to product launches in the
Automotive Group and expansion of capacity in the Rubber Group.
After the first nine months, the Automotive Group generated a slight
year-on-year rise in sales to EUR15 billion. The adjusted margin of 7.9%
matched exactly the previous year's level. The Rubber Group also generated
a slight increase in sales to more than EUR9.9 billion in the first three
quarters, and its adjusted margin of 17.3% was up on the previous year's
level of 16.2%.
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With sales of EUR32.7 billion in 2012, Continental is among the leading
automotive suppliers worldwide. As a provider 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 more than 177,000 employees in 46
countries.
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Contact for journalists
Hannes Boekhoff
Vice President for Media Relations
Continental AG
Vahrenwalder Str. 9
30165 Hanover, Germany
Tel.: 0049 511 938-1278
Fax: 0049 511 938-1016
E-mail: corporate-media-relations(at)conti.de
Antje Lewe
Spokeswoman, Business&Finance
Continental AG
Vahrenwalder Str. 9
30165 Hanover, Germany
Tel.: 0049 511 938-1364
Fax: 0049 511 938-1016
E-mail: corporate-media-relations(at)conti.de
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This press release is available in the following languages:
Chinese, Czech, Dutch, English, French, German, Hungarian, Japanese,
Korean, Portuguese (Brazil), Por-tuguese (Portugal), Romanian, Russian,
Slovakian, Spanish
-
Links
Overview of press releases: www.continental-media.com
Online media database: www.continental-mediacenter.com
Financial reports: www.continental-ir.com?End of Corporate News
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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: DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg,
Hannover, Stuttgart; Freiverkehr in Berlin, Düsseldorf,
München; Terminbörse EUREX; Luxemburg, SIX
End of News DGAP News-Service
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238465 07.11.2013
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Datum: 07.11.2013 - 09:17 Uhr
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