Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • News
    • OPINION
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • Humanitarian Award
    • RETAIL TIRES
    • SERVICE ZONE
    • TIRE MAKERS
    • Best Places to Work
    • RUSSIA WAR IN UKRAINE
  • Aligning with ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
August 04, 2015 02:00 AM

Conti raises fiscal earnings forecast

Tire Business Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    HANOVER, Germany (Aug. 4, 2015) — Continental A.G. is raising its earnings forecast slightly for fiscal 2015 after posting a “successful first half” and taking into account falling crude oil and natural rubber (NR) prices.

    For the period ended June 30, Conti reported a 19.4-percent jump in adjusted pre-tax operating income to $2.41 billion on 15.8-percent higher sales of $21.9 billion, yielding an operating ratio of 11 percent. Net income was up 11.1 percent to $1.62 billion.

    Conti attributed a major portion of its growth to the first-time inclusion of results from Veyance Technologies, the former Goodyear engineered products business whose acquisition was finalized in the fourth quarter of 2014.

    Discounting Veyance's inclusion, Conti reported 4.4-percent organic growth in the second quarter, spurred in part by double-digit sales growth in Asia.

    For the year, Conti now anticipates achieving 11-percent adjusted pre-tax operating earnings, up a half percentage point from earlier forecasts, together with 20-percent growth in free cash flow before acquisitions.

    One key factor in the positive outlook is Conti's belief that crude oil and NR prices will continue to weaken, yielding a positive effect on earings of nearly $225 million, up 33.3 percent over earlier projections, the company said, noting it estimates NR prices will fall to $1.58 per kilogram, down from earlier projections of $1.62.

    Conti's tire division reported 16-percent higher adjusted operating income of $164.7 million on 7.2-percent better sales of $5.65 billion. The company attributed higher aftermarket consumer tire sales volumes in the Americas, increased OE sales worldwide and better commercial vehicle tire business globally for the improved sales and earnings.

    The firm did not provide regional breakdowns of its divisional results.

    “We proved how strong we are in a challenging environment,” Conti Chairman Elmar Degenhart said, referring to the firm's organic growth in the quarter.

    “Despite a slowdown in the growth rate of vehicle production in Asia, we anticipate stable business development in the remaining half of the year at the high level already achieved,” he added.

    Conti expects its net indebtedness to fall below $4.5 billion by year-end as it plans to redeem a $950 million U.S. dollar bond in the coming weeks — four years ahead of the maturity date — to take advantage of other debt instruments with “considerably” more favorable terms.

    Related Articles
    China plant expansion part of Conti's master plan
    Conti launches construction tire range
    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
    Updated: ATD to buy Monro tire-distribution unit for $105M
    2
    Bruno to assume Pirelli CEO role in 2023
    3
    Michelin worker dies at Nova Scotia tire plant
    4
    Monro fiscal '22 earnings, sales up double-digits
    5
    Apollo fiscal '22 sales up 20%, earnings down
    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
    • 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 © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • Humanitarian Award
      • RETAIL TIRES
      • SERVICE ZONE
      • TIRE MAKERS
      • Best Places to Work
      • RUSSIA WAR IN UKRAINE
    • Aligning with ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION