Conti Has 3 Billion Euros to Invest, CFO Says
(Akron/Tire Review) Continental AG’s chief financial officer claimed yesterday that the German tyre and auto system maker has at least 3 billion euros in a ‘war chest’ to finance future acquisitions. Company CFO Alan Hippe, who is also president of Continental Tire North America, made the remarks in an interview with Handelsblatt newspaper.
The newspaper asked what the company will do with the cash reserves, and Hippe replied, “I consider that (figure) as too conservative. It is actually more. We are looking for attractive acquisition possibilities. If we don’t find any, we will return the money to investors.”
Hippe also said that rising raw material prices will force the company to increase tyre prices as other tyremakers have done. But, he also said that the because the company derives less than 50 per cent of its revenues from tyres, it is less vulnerable to shifts in raw material costs prices than competitors that exclusively rely on tyres.