Dax Return Makes an Impact for Continental
A year after returning to the Frankfurt’s DAX stock exchange, Continental’s management is saying that it “has profited noticeably from its return to the DAX.” The chairman of Continental’s executive board made the comments at the IAA Commercial Vehicle Show in Hannover.
“In addition to our key financial indicators, the fact that European and US investors have become more aware of Continental’s successful business model has undoubtedly contributed to the rise in the share price by more than 80 per cent since 22 September, 2003. This has been confirmed by the substantial increase in demand from internationally renowned investors with medium and long-term investment strategies following our talks with them,” explained Mr Wennemer.
The chairman pointed out that Continental has edged its way up to the 19th place on the stock market with a market capitalisation of more than 5.6 billion euros at the end of August. Continental’s 8.6 billion euro trading volume means that from the first part of September 2003 to the end of August 2004, Continental was one of the most highly traded German stocks.
Mr Wennemer was also positive about the future: “We assume that the interest in our company will continue in view of the growth strategy based upon sustainable creation of value.” The executive board chairman cited a few examples, such as the planned takeover of Phoenix, for which a decision is expected from the EU commission shortly, as well as the projected entry into the Chinese tyre market. Mr Wennemer’s comments came a day after the international automotive supplier had announced the signing of a memorandum of understanding with Qingdao Doublestar Tire Industrial C., Ltd, Qingdao, expressing both companies’ intention to found a joint venture in spring 2005.
Mr Wennemer reaffirmed the forecast that, in the current business year 2004 Continental would outperform its previous year’s operating result – despite the charge due to the restructuring at its Mayfield passenger tyre plant in the US: “The figures from July and August confirm that we are on the way to reaching our goal despite the fact that the global automotive economy continues to have its ups and downs.”