DGAP-News: Continental AG / Key word(s): Quarter Results/Miscellaneous
2015-05-07 / 08:30
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Continental Increases Sales Expectations for 2015 to More Than EUR39
Billion After Good First Quarter
* Sales grow 14 percent to EUR9.6 billion after three months
* Net income for the period rises 12 percent to EUR657 million or EUR3.28
per share
* Free cash flow before acquisitions increases significantly to EUR318
million
* EBIT at EUR978 million
Hanover, May 7, 2015. After a successful start to the new year, the
Continental Corporation is increasing its sales forecast for the current
fiscal year from about EUR38.5 billion to more than
EUR39 billion. "The first quarter showed that we are growing faster than
the markets. Positive effects of foreign exchange are adding to this. We
expect this positive development to continue. Furthermore, we anticipate a
tailwind of around EUR150 million for the year as a whole due to the
ongoing stable price trend for rubber and the lower price of crude oil. We
therefore expect to comfortably achieve an adjusted EBIT margin of more
than 10.5 percent in the current year," said Continental CEO Dr. Elmar
Degenhart on Thursday when presenting the business figures for the first
quarter.
In the first quarter of 2015, sales of the international automotive
supplier, tire manufacturer and industrial partner climbed by 14 percent,
year-on-year, to EUR9.6 billion. At the same time, the net income
attributable to the shareholders of the parent increased by 12 percent to
EUR657 million. Earnings per share rose accordingly to EUR3.28 compared
with EUR2.94 in the same period of the previous year. As at March 31, EBIT
also increased by 8.3 percent, year-on-year, to EUR978 million. This
equates to a margin of 10.2 percent compared with 10.8 percent in the
previous year. The adjusted EBIT climbed by 10.4 percent, year-on-year, to
more than EUR1 billion. At 11.4 percent, the adjusted EBIT margin was
therefore at the same level as the first three months of 2014.
Furthermore, Continental continued to generate strong cash flow as in the
previous fiscal year. "Free cash flow before acquisitions increased
significantly, year-on-year, from EUR81 million to EUR318 million or by
EUR237 million. Taking into account the acquisition of Veyance Technologies
that closed in January, free cash flow amounted to -EUR271 million. We are
very confident that we can generate free cash flow before acquisitions of
at least EUR1.5 billion for the year as a whole," said Chief Financial
Officer Wolfgang Schäfer.
Net indebtedness of the Continental Corporation at the end of the first
quarter was EUR4.1 billion. This is EUR144 million less than a year ago.
Net indebtedness increased by around EUR1.3 billion compared with the end
of 2014, following the closure of the Veyance acquisition. Our gearing
ratio was 33.5 percent at the end of March 2015.
As at 31 March 2015, Continental had around EUR6.7 billion of liquidity
reserves, comprising approximately EUR2.4 billion in cash and cash
equivalents and committed unutilized credit lines of approximately EUR4.3
billion.
Interest expense fell in the first three months of 2015 by EUR23 million to
EUR84 million. Net interest expense declined by EUR24 million to EUR56
million.
In the first three months, Continental invested a total of EUR357 million
in property, plant and equipment, and software. The capital expenditure
ratio therefore amounted to 3.7 percent in comparison to 4.1 percent in the
same period of the previous year. Continental increased its research and
development expenditure by 18.2 percent, compared with the first quarter of
2014, to EUR643 million. This corresponds to 6.7 percent of sales compared
with 6.5 percent a year ago.
At the end of the first quarter, Continental employed 202,496 people,
representing a rise of 13,300 compared to the end of 2014. This was due
primarily to the acquisition of Veyance Technologies and additional
expansion of production capacity, distribution channels, and research and
development.
The Automotive Group generated sales of EUR5.9 billion in the first three
months of this year. At 8.7 percent, the adjusted EBIT margin was higher
than the previous year's level of 8.3 percent.
The Rubber Group generated first quarter sales of just under EUR3.7 billion
and stabilized the adjusted EBIT margin at the previous year's level of
17.0 percent of sales.
Continental develops intelligent technologies for transporting people and
their goods. As a reliable partner, the international automotive supplier,
tire manufacturer and industrial partner provides sustainable, safe,
comfortable, individual, and affordable solutions. In 2014, the corporation
generated sales of approximately EUR34.5 billion with its five divisions
Chassis & Safety, Interior, Powertrain, Tires, and ContiTech. Continental
currently employs approximately 200,000 people in 53 countries.
Press contact:
________________________________________
Hannes Boekhoff
Vice President, Media Relations
Continental AG
Phone: +49 (0) 511 938-1278
Cell: +49 (0) 170 762 73 26
E-mail: hannes.boekhoff@conti.de
Vincent Charles
Spokesman, Business & Finance
Continental AG
Phone: +49 (0) 511 938-1364
Cell: +49 (0) 173 314 50 96
E-mail: vincent.charles@conti.de
________________________________________
This press release is available in the following languages: German, English
________________________________________
Press portal: www.continental-presse.de
Financial reports: http//www.continental-ir.de
Video portal: http://videoportal.continental-corporation.com
Media database: http://www.continental-mediacenter.com
________________________________________
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2015-05-07 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@conti.de
Internet: www.conti.de
ISIN: DE0005439004
WKN: 543900
Indices: DAX
Listed: Regulated Market in Frankfurt (Prime Standard), Hamburg,
Hanover, Stuttgart; Regulated Unofficial Market in Berlin,
Dusseldorf, Munich; Terminbörse EUREX; Luxemburg, SIX
End of News DGAP News-Service
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