Continental raises EBIT forecast, increases income in Q2
Continental Corporation has again increased its earnings forecast for the 2014 fiscal year. Upon publishing the company’s second quarter and first half results, Executive Board chairman Dr. Elmar Degenhart said Continental is now aiming for an adjusted EBIT of 11.0 per cent rather than the 10.5 per cent announced in March (when it was increased from 10.0 per cent). This 11.0 per cent target is supported, the company says, by the ongoing trend towards favourable natural rubber prices.
Second quarter sales amounted to €8,528.0 million, 0.2 per cent lower than a year earlier, while operating profit rose 2.7 per cent year-on-year to €906.9 million. Year-on-year operating margin rose from 10.3 per cent to 10.6 per cent. Net income, at €738.1 million, was 2.1 per cent higher than in the second quarter of 2013.
Sales of €16,918.1 million were recorded in the first half of fiscal 2014, representing year-on-year growth of 2.1 per cent. Operating income, at €1,810.1 million, was 11.0 per cent higher than a year earlier, while operating margin grew from 9.8 per cent to 10.7 per cent. Net income for the first half of 2014 increased 13.4 per cent to €1,345.7.
Further financial information for Continental can be found here.