HANOVER, Germany — Continental A.G. expects to reach its projected financial targets for 2017 after reporting double-digit gains in sales and earnings in the quarter ended March 31.
“Continental made a very good start to the new fiscal year in a volatile environment,” CEO Elmar Degenhart said in statements prior to the start of the company's annual general meeting in Hanover.
Pre-tax operating profit rose about 10 percent to about $1.28 billion in the three months through March. Revenues were up almost 12 percent at $11.7 billion, yielding an operating margin of 10.7 percent.
Continental has said it aims to raise annual sales by more than 6 percent this year to over $45.8 billion, despite rising raw material price, with a margin on adjusted operating profit of more than 10.5 percent.
Organic growth and exchange rate shifts amounted for some of the growth, Conti said.
Continental is due to publish full first-quarter earnings on May 9.