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.
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.
At Continental’s Supplier Day 2014, held recently in Prague, the tyre maker and automotive systems provider honoured suppliers that offered “outstanding performance” last year. The company gave Supplier of the Year 2013 awards to 16 of its approximately 900 key suppliers at a ceremony attended by 370 invited guests. Awards were given for excelling in four key areas: quality, technology, logistics and purchasing conditions.
After what it says was “a successful start to the new year,” Continental Corporation has raised its adjusted EBIT outlook. “For fiscal 2014 we intend to comfortably achieve an adjusted EBIT margin of 10.5 per cent instead of the originally advised 10.0 per cent,” announced Continental CEO Dr. Elmar Degenhart at last Friday’s Annual Shareholders’ Meeting.
The abrupt end of Elke Strathmann’s career at Continental AG was made public earlier this month, and the company announced today that Strathmann has already relinquished her seat on its Executive Board. Dr. Ariane Reinhart has been named as Continental’s new Executive Board member for human resources and director of labour relations.