Germany’s Continental AG reported its financial results for the first half of 2016 this morning and, thanks to what the tyre maker and automotive systems supplier calls “excellent operating performance” within its Rubber Group, has raised its earnings forecast for the current fiscal year.
Leading tyre manufacturers have begun offering their responses to the UK electorate’s decision to leave the EU. Describing the trajectory of the Brexit vote as “very worrying”, Continental AG CEO Dr Elmer Degenhart commented: “Taking the pan-European context into account the vote is very worrying. ‘Everyone on his own’ does not fit the idea behind the formation of the EU and cannot be the answer to the challenges of the global competition with America and Asia.”
However, Degenhart does not expect big problems for Continental itself: “The direct economic impact on Continental is expected to be limited because currently we generate less than 3 per cent of our sales in the UK and expect to be successful in this market also in the future.”
In recent months Continental AG has been evaluating potential sites for its new headquarters, and has examined plots in Hannover and the nearby town of Garbsen. The company now shares that it is favouring the location near the ‘Pferdeturm’ in Hannover as the site for its future headquarters. Continental says it has officially entered concrete, detailed negotiations to this end with the city of Hannover.
Although Continental says the economic environment in the first quarter of 2016 was as “difficult as expected,” the company reports making a good start to the year. In the three months to 31 March, the tyre maker and automotive supplier’s sales rose three per cent year-on-year to €9.85 billion, even though negative exchange-rate effects had reduced this sales growth by 2.1 percentage points. Adjusted EBIT climbed to €1.1 billion. At 11.3 per cent, the adjusted EBIT margin was higher than the previous year’s level of 10.6 per cent.
Preliminary key data published today by Continental Corporation shows that the tyre and automotive systems manufacturer enjoyed both higher turnover and adjusted EBIT margin in the 2015 fiscal year. Full year sales of around 39.2 billion euros represent a year-on-year increase of 13.6 per cent, while adjusted EBIT margin rose from 11.3 per cent for the 2014 financial year to 11.7 per cent for 2015.
Continental AG Executive Board chairman Dr Elmar Degenhart has been awarded the Karmarsch commemorative medal by the Leibniz Universitätsgesellschaft Hannover e.V (Leibniz University Society) in Hannover, Germany. Degenhart received his honour for special services towards the promotion of technology and business.
Tyre and automotive systems manufacturer Continental has donated €100,000 to German non-governmental aid agency Welthungerhilfe in order to support Syrian refugees now living in camps in the Middle East and Turkey. Continental shares that this donation complements activities its employees have carried out at several Continental locations.
Prior to the start of the IAA show, which is currently taking place in Frankfurt, Continental’s Dr Elmar Degenhart announced the introduction of new tyre-based technology. The Executive Board chairman stated: “In future we’ll build sensors into tyres that are capable of immediately sensing the texture of a road surface. In this way we will turn the tyre into an important component in our in-car sensor network.”
All key financial figures headed in the right direction during the first half of this year, and therefore tyre maker and automotive industry supplier Continental AG has upwardly revised its adjusted EBIT margin and free cash flow forecast for the full year.
Continental Corporation is increasing its sales forecast for the current fiscal year from about €38.5 billion to more than €39 billion after its sales climbed 14 per cent year-on-year to €9.6 billion and net income rose 12 per cent to €657 million in the first three months of this year.
While Continental will present its figures for the first quarter of 2015 on Thursday, the company has already published some details of what it calls a “positive start” to the year. In the three months to 31 January, the tyre maker and automotive supplier’s sales rose 14 per cent year-on-year to around €9.6 billion. Adjusted EBIT increased to approximately €1 billion. Integration costs and one-time expenses for Veyance of €37 million had a negative effect on the company results in the first quarter.
Millions can’t imagine life without their iPhone and iPad, and now a watch is tempting the hearts, minds and wallets of Apple devotees around the world. And if the rumour mill is churning out anything half approaching the truth, the US firm is also working on producing an Apple-branded car with the help of ex-Tesla engineers. If an Apple car does come to fruition, Continental may play a contributory role in its development.
The CEO of Continental Corporation has described 2014 as “another extremely successful financial year” and confirmed that all targets set for the year were reached. “When evaluating the results, we should not overlook the fact that there was, in some cases, very weak growth in Europe, Russia, and South America,” elaborated Dr. Elmar Degenhart. “There were also significant exchange rate fluctuations. In addition, the mild winter at the end of 2014 had a negative impact on the winter tyre business in Europe. The driving force behind the sales development once again came from China and North America. In light of this, it is remarkable that profit after taxes of just under €2.4 billion or €11.88 per share could be achieved.”
The European replacement tyre market displayed a “pronounced weakness” in the four quarter of last year, says Continental Corporation, however during the 2014 fiscal year the company as a whole managed to grow year-on-year, and achieved an annual turnover of approximately €34.5 billion. The company’s adjusted EBIT margin exceeded 11 per cent.
Following what it calls a “solid third quarter”, Continental Corporation has confirmed its forecast for the 2014 fiscal year. The tyre and automotive systems manufacturer reported net sales of €8.7 billion in the period between 1 June and 30 September, a year-on-year increase of 3.8 per cent. EBIT decreased 28.0 per cent to €637.8 million in the three-month period, with EBIT margin declining from 10.6 per cent in Q3 2013 to 7.4 per cent, however net income rose 14.1 per cent to €495.1 million. Earnings per share amounted to €2.47, up from €2.17 a year earlier.