ContiTech sets goal of doubling turnover
Sales at Continental’s ContiTech division are expected to increase five per cent year-on-year in 2014, but the plan for the coming decade is for much larger growth. In an interview with German financial daily Handelsblatt, division head and ContiTech AG Executive Board chairman Heinz-Gerhard Wente shared on expansion plans for the newly-enlarged ContiTech: “The goal within the next ten years is to again double the turnover of ContiTech, including Veyance. This is by no means utopian.” This means turnover of around €11 billion.
The increase in turnover this year should match that achieved in 2013, while net income is expected to remain at last year’s level. At a press conference this week, Wente stated: “We are optimistic overall about fiscal 2014. We have already had three promising months. ContiTech is again aiming to boost sales another five per cent this year. We also want to match the previous year’s income return, even if exchange rates negatively impact our results.”
ContiTech generated sales €3.9 billion in 2013, and a highlight of the year was the purchase of plastic and rubber specialist Veyance Technologies Inc. for €1.4 billion. The Veyance deal is expected to close in the second half of 2013, and at the start of this month ContiTech made a further acquisition, purchasing blow moulding specialist Inotec Innovative Technologie.