DGAP-News: Continental AG: Continental Raises Sales and EBIT Forecast for Current Fiscal Year
(firmenpresse) - DGAP-News: Continental AG / Key word(s): Half Year Results
Continental AG: Continental Raises Sales and EBIT Forecast for Current
Fiscal Year
29.07.2011 / 08:49
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* Automotive supplier expects sales of at least EUR29.5 billion in 2011
* Adjusted EBIT margin of around 10% now targeted
* Raw materials expenses of EUR850 million anticipated in the Rubber Group
* Sales grow to EUR14.9 billion in the first half-year, net income up 96%
to EUR683 million
* Net indebtedness reduced to EUR7.1 billion
Hanover, July 29, 2011. The international automotive supplier Continental
is raising its outlook for the current business year, based upon a very
successful first half-year with double-digit growth rates for sales and
EBIT. 'We had previously forecast sales of more than
EUR28.5 billion, but we are now expecting at least EUR29.5 billion. We are
also targeting an adjusted EBIT margin of around 10%, slightly more than
the good 2010 figure of 9.7%,' said Continental Executive Board chairman
Dr. Elmar Degenhart on Friday upon publication of the figures for the first
half of the year, adding: 'At present, we do not see any reason why the
good development in earnings should be weaker in the second half of 2011
than in the first half.'
He also pointed out that, despite the fact that prices of natural rubber
are in the meantime declining somewhat, raw material expenses for the
Rubber Group in 2011 will probably run at EUR850 million. The main reason
for this is the spike in prices for synthetic rubber, due in part to the
natural catastrophe in Japan. This development will impact in particular
the Passenger and Light Truck Tires and ContiTech divisions in the second
half of the year.
Year-on-year, the Continental Corporation raised its sales in the first
half-year by 17.6% to EUR14.9 billion. At the same time, the automotive
suppliers achieved an EBIT of just under
EUR1.3 billion, which is EUR270 million or 26.7% more than in the same
period last year. The EBIT margin is 8.6% after 8.0% in 2010. Adjusted EBIT
before amortization and special effects rose to nearly EUR1.5 billion. This
represents an increase of EUR174 million or 13.3% and an adjusted EBIT
margin of 10%.
In the first six months of this year, net income attributable to the
shareholders of the parent was up 96% to EUR683 million. Earnings per share
increased to EUR3.42 from EUR1.74 in the same period of 2010. After the
first six months, Continental had a total workforce of 159,116 employees,
or 10,888 more than at the end of 2010.
Continental's chief financial officer Wolfgang Schäfer pointed out that the
Continental Corporation was able to further reduce its net indebtedness in
the first six months of this year. 'After the first half-year, we can
confirm the goals we set for the current business year with regards to the
gearing ratio and have our sights set firmly on 70%, which is our target
for the medium term,' Schäfer said. 'This is reflected in the recent
upgrading of our creditworthiness by Standard&Poor's rating agency. We
are well on our way to satisfying the prerequisites for a rating within the
investment grade category on a stand-alone basis by the end of 2012 at the
latest. For the current business year, we want to generate free cash flow
of more than EUR500 million and reduce our net indebtedness to well below
EUR7 billion. The good development in the operating results gives us cause
to be optimistic that we will achieve a return on capital employed (ROCE),
which is a barometer for economic strength and efficiency, of 15% and thus
create additional value.'
Schäfer also pointed out that on June 30, 2011, Continental had at its
disposal liquidity reserves totaling nearly EUR3.9 billion, consisting of
cash and cash equivalents of almost
EUR1.6 billion as well as unused committed lines of credit totaling some
EUR2.3 billion.
The Automotive Group as well as the Rubber Group made a positive
contribution to the growth in sales and earnings. Year-on-year, the
Automotive Group upped its sales in the first half-year by 15% to
approximately EUR9.1 billion. An EBIT of EUR503 million was reported after
EUR361 million in 2010. With growth of 21%, the Rubber Group achieved sales
of EUR5.8 billion and reported an EBIT of EUR797 million compared to EUR691
million in the prior year, despite raw material expenses totaling EUR532
million in the first six months.
'In view of the additional opportunities for sales, we increased the
capital expenditure ratio already in the first half of the year,' said
Degenhart, adding: 'As already announced in the first quarter, we will
invest up to 1.8 billion in all divisions in the year as a whole, thus
creating the basic conditions necessary for us to stay at the forefront.'
With sales of EUR26 billion in 2010, 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 160,000 employees in
45 countries.
Dr. Felix Gress
Senior Vice President
of Corporate Communications
Continental AG
Vahrenwalder Straße 9
30165 Hannover, Germany
Phone: +49 511 938-1485
Fax: +49 511 938-1055
E-Mail: prkonzern(at)conti.de Hannes Boekhoff
Vice President
of Media Relations
Continental AG
Vahrenwalder Straße 9
30165 Hannover, Germany
Phone: +49 511 938-1278
Fax: +49 511 938-1016
E-mail: corporate-media-relations(at)conti.de
The press release is available in the following languages: Chinese, Czech,
English, French, German, Hungarian, Japanese, Portuguese (Brazil),
Portuguese (Portugal), Romanian, Russian, Slovakian, Spanish.
Media database: www.mediacenter.continental-corporation.com
Financial reports: www.continental-ir.de
End of Corporate News
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29.07.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
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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, SIX, Stuttgart; Freiverkehr in Berlin,Düsseldorf, München; Terminbörse EUREX; Luxembourg
End of News DGAP News-Service
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133681 29.07.2011
Datum: 29.07.2011 - 08:49 Uhr
Sprache: Deutsch
News-ID 39286
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Kategorie:
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