Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • HUMANITARIAN
  • News
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • BEST PLACES TO WORK
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
March 06, 2014 01:00 AM

Conti off to 'solid start' in 2014

Tire Business Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    (Continental A.G. photo)
    Continental CEO Elmar Degenhart: “We expect to comfortably achieve an adjusted EBIT (earnings before interest and taxes) margin of more than 10 percent.”

    FRANKFURT, Germany (March 6, 2014) — Continental A.G. management expects to report improved operating income in the first quarter on 3- to 4-percent higher sales, CEO Elmar Degenhart told a gathering of business media today in Frankfurt.

    The company's “solid start” so far in 2014 leaves management “confident as regards the outlook for fiscal 2014,” Mr. Degenhart said, noting that Conti expects global demand for consumer and commercial vehicles to rise about 2 percent this year.

    Conti's goal for 2014 is 5-percent sales growth, he said. The company sees “substantial negative” currency exchange rate effects, he added, which could impact sales in the first quarter by up to 4 percentage points, but which should not hurt the firm's profit margin for the year.

    “We expect to comfortably achieve an adjusted EBIT (earnings before interest and taxes) margin of more than 10 percent,” he said.

    Mr. Degenhart's forecasts do not include provisions for the acquisition of Veyance Technologies Inc., which is still undergoing review.

    For fiscal 2013, Conti reported net income of more than $2.5 billionon 1.8-percent higher sales of $44 billion, despite negative exchange rate effects of more than $1 billion. The firm's adjusted EBIT—taking into account depreciation and amortization due to acquisitions and for special effects—rose 3.5 percent to $4.9 billion, or 11.3 percent of sales.

    Mr. Degenhart said Conti is proposing paying a dividend of $3.32 per share, or a payout ratio of 26 percent, based on per-share earnings. Conti's share price rose 82 percent throughout the year, he added.

    Since the end of 2012, Conti's net indebtedness has dropped nearly 19 percnt to $5.7 billion, thereby improving the gearing ratio to 46 percent from roughly 65 percent at year-end 2012. Mr. Degenhart said.

    “Although our net indebtedness still exceeds that of our key competitors,” he said, “we are continuing to pursue the goal of a prudent strengthening of our business outside the automotive industry—possibly through additional acquisitions in the non-automotive industrial sector, but also by means of continuous expansion of our replacement tire business.”

    In 2013, Conti increased spending for research and development to $7.44 billion, or 5.6 percent of sales, the highest level in company history. Employment rose by 8,000 to 178,000 at year-end.

    Related Articles
    Conti to acquire Veyance from Carlyle
    Conti CEO: Veyance will grow, not cut operation
    Bridgestone, Conti, SRI earn honors
    Conti starts radials at Indian plant
    Conti expanding work force
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Turbo Wholesale acquires Tire Wholesalers Inc.
    2
    Goodyear to halve capacity at Fulda plant, cut jobs
    3
    Triangle strengthens U.S. distribution capacity
    4
    VIP Tires acquires Marshfield Tire in Massachusetts
    5
    TBC, Mavis complete deal for NTB, Tire Kingdom stores
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HUMANITARIAN
    • News
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • BEST PLACES TO WORK
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION