Continental expects 2012 margin to exceed good previous year level

qiangzi

Wednesday, August 8, 2012
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( B0 @5 e, _. C# ?+ `6 ~% vHanover, Germany - In the second quarter, Continental Corporation nearly matched the dynamic level of the strong first quarter and sees itself on track for another record year. As a result of the good development in the first half of the year, Continental now anticipates an increase in consolidated sales of more than 7 percent to over EUR 32.5 billion. In addition, Continental assumes that the adjusted EBIT margin will even top the very good level achieved in 2011. The reason for this reassessment is the slightly lower negative impact from raw materials costs, which had recently increased heavily. Despite record investments of some EUR 2 billion, the goal for the free cash flow remains unchanged at more than EUR 600 million. In the first six months of 2012, the international automotive supplier increased its sales 10.9 percent year-on-year to EUR 16.5 billion. At the same time, EBIT rose almost 26 percent to EUR 1.6 billion, with an EBIT margin of 9.7 percent, against 8.6 percent a year ago. The corporation's adjusted EBIT, adjusted particularly for acquisition-related amortization and special effects, rose to more than EUR 1.8 billion, up from just under EUR 1.5 billion. The adjusted EBIT margin is 11.1 percent after 10 percent a year ago. In the first half of 2012, the net income attributable to the shareholders of the parent rose nearly 47 percent year-on-year to EUR 1 billion, corresponding to earnings per share of EUR 5.02 after EUR 3.42 one year ago. As previously announced, Continental again created new jobs in the second quarter. The company's workforce now totals nearly 169,000, which is 9,700 more than a year ago and 5,000 more than at the beginning of the year. The rubber group recorded sales of EUR 6.5 billion, which is another new half-year record. -