DGAP-News: Continental AG: Continental Confirms Outlook and Sees Still-Strong Order Books
(firmenpresse) - DGAP-News: Continental AG / Key word(s): Quarter Results
Continental AG: Continental Confirms Outlook and Sees Still-Strong
Order Books
03.11.2011 / 08:32
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Press Release
Continental Confirms Outlook and Sees
Still-Strong Order Books
- Automotive supplier grows sales to about EUR22.6 billion after nine
months
- Adjusted EBIT of approximately EUR2.2 billion / margin of 9.9%
- Net income at EUR894 million more than double year-on-year
- Raw material costs will rise to exceed EUR950 million for the
corporation as a whole
Hanover, November 3, 2011. The international automotive supplier
Continental is right on target and is confirming its forecast for the
current fiscal year. 'We are still expecting sales to reach at least
EUR29.5 billion. In addition, we still feel we can achieve an adjusted EBIT
margin of some 10% for the full year 2011, even if this must meanwhile be
viewed as an ambitious target owing to the higher-than-expected burden we
are experiencing from raw material costs,' said Continental Executive Board
Chairman Dr. Elmar Degenhart on Thursday. 'We expect that positive effects
primarily from the very good utilization of our capacities will roughly
offset the negative impact from the increasing raw material costs.
Moreover, at present we still see strong order books.'
Degenhart explained that the Rubber Group must cope with a burden of more
than EUR900 million in raw material costs in the current fiscal year
instead of the previously anticipated EUR850 million, in particular because
increasing prices for synthetic rubber impacted operating results earlier
than had been expected. 'Furthermore, the Automotive Group is contending
with additional costs totaling a maximum of EUR50 million in the fourth
quarter as a result of the recent spike in rare earth prices. In the course
of the year, for instance, the price of dysprosium has soared nearly
twentyfold from its low level in 2010,' said Degenhart. Dysprosium is used
in manufacturing magnets for electric motors, as well as other products.
Year-on-year, the Continental Corporation raised its sales in the first
nine months of 2011 by 18% to EUR22.6 billion. At the same time, the
automotive supplier achieved an EBIT of EUR1.9 billion, about EUR540
million or nearly 40% more than in the same period last year. The EBIT
margin is 8.5%, compared with 7.2% in 2010.
Adjusted EBIT before acquisition-related amortization and special effects
rose by roughly EUR433 million or nearly one quarter to EUR2.2 billion.
This represents an adjusted EBIT margin of 9.9%, compared with 9.4% in
2010. In the first nine months of this year, net income attributable to the
shareholders of the parent grew by EUR531 million, and was far more than
double at EUR894 million. Earnings per share increased to EUR4.47 from
EUR1.82 for the third quarter of 2010. At the end of September, Continental
had a total workforce of 164,078 employees, approximately 18,000 more than
at the end of September 2010.
Chief financial officer Wolfgang Schäfer pointed out that in the first
three quarters of 2011 Continental had achieved a free cash flow of minus
EUR54 million, a year-on-year improvement of nearly EUR116 million. 'We
confirm our target of generating free cash flow of more than EUR500 million
and reducing our net indebtedness to well below EUR7billion by the end of
this year,' said Schäfer. At the end of the third quarter, net indebtedness
stood at just under EUR7.3 billion, nearly EUR800 million less than at the
end of September 2010. The gearing ratio was 103.3% as opposed to 137.9% at
the end of September 2010. On September 30, 2011, the corporation had at
its disposal liquidity reserves of just under EUR3.9 billion. 'With about
EUR1.5 billion in cash and cash reserves, we had nearly EUR500 million more
available to us than on the same date in 2010,' explained Schäfer.
Unutilized, committed credit lines amounted to some EUR2.3 billion,
approximately as high as they were at the end of September 2010.
'Thanks to contributions made by both the Automotive and Rubber Groups, we
are well on our way to achieving the annual targets we revised upward in
the summer. In the Automotive Group, we posted sales volumes of
approximately EUR13.7 billion after three quarters. This represents 15%
growth year-on-year after nine months, which is substantially stronger than
the growth experienced by our key markets,' said Degenhart. 'At the end of
three quarters, we can report an adjusted EBIT of approximately EUR1.1
billion. The adjusted EBIT margin was 8.1%, compared with 6.5% for the same
period of 2010.'
The Rubber Group boosted its sales in the first nine months of 2011
year-on-year by about EUR1.5 billion to approximately EUR8.9 billion.
Despite raw material costs amounting to EUR765 million in the first three
quarters, the adjusted EBIT rose roughly EUR113 million to nearly EUR1.2
billion. The adjusted EBIT margin was 13.5% after 14.7% for the same period
of 2010.
In the first three quarters of 2011, the Continental Corporation invested
roughly EUR1 billion after EUR782 million in the same period of 2010.
Approximately EUR1.2 billion was spent on research and development, EUR82
million more than in the first nine months of 2010. 'Our successes this
year and the customer interest in the new products we showcased at the
latest IAA Motor Show demonstrate that we were right in deciding to invest
more than EUR1.3 billion in research and development (R&D) even in the 2009
crisis year. At 5.4% of sales, our R&D rate is now returning to the normal
level, after 6% a year ago and 6.7% in 2009,' said
Degenhart.
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 164,000 employees in
45 countries.
Dr. Felix GressThis press release is available in the following languages: Chinese, Czech,
Senior Vice President Hannes Boekhoff
Vice President
Media
Corporate Communications
Continental Relations
Continental AG
Vahrenwalder
AG
Vahrenwalder Str. 9
30165 Hanover, Str. 9
30165 Hanover, Germany
Phone:
Germany
Phone: +49 511 938-1485
Fax: +49 511 938-1278
Fax: +49 511 938-
+49 511 938-1055
E-mail: 1016
E-mail: corporate-media-
prkonzern(at)conti.de relations(at)conti.de
English, French, German, Hungarian, Japanese, Portuguese (Brazil),
Portuguese (Portugal), Romanian, Russian, Slovakian, Spanish.
Online media database: www.mediacenter.continental-corporation.com
Financial reports: www.continental-ir.de
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
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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144537 03.11.2011
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Datum: 03.11.2011 - 08:32 Uhr
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