HANOVER, Germany (Aug. 3, 2016) — Continental A.G. is raising its earnings forecast for fiscal 2017 slightly based on better-than-expected first-half figures — especially pertaining to the tire and rubber goods sectors.
Continental Chairman Elmar Degenhart singled out the company's Rubber Group's “excellent operating performance” for the firm's confidence, noting the unit's “very positive unit sales development…has given us an additional boost.”
The company expects its full-year pre-tax operating margin to exceed 11 percent, up from the previously published estimate of about 11 percent. Its development is also being helped by lower-than-expected raw materials costs.
Overall, Conti reported 6-percent higher pre-tax operating income of $3.66 billion on 2.3-percent higher sales of $22.5 billion. Net income was up 13.1 percent to $1.84 billion.
The Rubber Group reported 12-percent increase in pre-tax income of $2.03 billion on 2.4-percent higher sales of $8.87 billion. The adjusted EBIT margin increased by 2.3 percentage points to 18.8 percent.
Tire division earnings were up 11.1 percent to $1,61 billion on 2.8-percent higher sales of $5.85 billion, yielding a 27.5-percent earning ratio.