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Hanover, May 7, 2015. After a successful start to the new year, the Continental Corporation is
increasing its sales forecast for the current fiscal year from about €38.5 billion to more than
€39 billion. “The first quarter showed that we are growing faster than the markets. Positive effects
of foreign exchange are adding to this. We expect this positive development to continue.
Furthermore, we anticipate a tailwind of around €150 million for the year as a whole due to the
ongoing stable price trend for rubber and the lower price of crude oil. We therefore expect to
comfortably achieve an adjusted EBIT margin of more than 10.5 percent in the current year,” said
Continental CEO Dr. Elmar Degenhart on Thursday when presenting the business figures for the
first quarter.
In the first quarter of 2015, sales of the international automotive supplier, tire manufacturer and
industrial partner climbed by 14 percent, year-on-year, to €9.6 billion. At the same time, the net
income attributable to the shareholders of the parent increased by 12 percent to €657 million.
Earnings per share rose accordingly to €3.28 compared with €2.94 in the same period of the
previous year. As at March 31, EBIT also increased by 8.3 percent, year-on-year, to €978 million.
This equates to a margin of 10.2 percent compared with 10.8 percent in the previous year. The
adjusted EBIT climbed by 10.4 percent, year-on-year, to more than €1 billion. At 11.4 percent,
the adjusted EBIT margin was therefore at the same level as the first three months of 2014.
Furthermore, Continental continued to generate strong cash flow as in the previous fiscal year.
“Free cash flow before acquisitions increased significantly, year-on-year, from €81 million to
€318 million or by €237 million. Taking into account the acquisition of Veyance Technologies that
closed in January, free cash flow amounted to -€271 million. We are very confident that we can
generate free cash flow before acquisitions of at least €1.5 billion for the year as a whole,” said
Chief Financial Officer Wolfgang Schäfer.
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Your contact:
Hannes Boekhoff, phone: +49 511 938-1278
Net indebtedness of the Continental Corporation at the end of the first quarter was €4.1 billion.
This is €144 million less than a year ago. Net indebtedness increased by around €1.3 billion
compared with the end of 2014, following the closure of the Veyance acquisition. Our gearing ratio
was 33.5 percent at the end of March 2015.
As at 31 March 2015, Continental had around €6.7 billion of liquidity reserves, comprising
approximately €2.4 billion in cash and cash equivalents and committed unutilized credit lines of
approximately €4.3 billion.
Interest expense fell in the first three months of 2015 by €23 million to €84 million. Net interest
expense declined by €24 million to €56 million.
In the first three months, Continental invested a total of €357 million in property, plant and
equipment, and software. The capital expenditure ratio therefore amounted to 3.7 percent in
comparison to 4.1 percent in the same period of the previous year. Continental increased its
research and development expenditure by 18.2 percent, compared with the first quarter of 2014,
to €643 million. This corresponds to 6.7 percent of sales compared with 6.5 percent a year ago.
At the end of the first quarter, Continental employed 202,496 people, representing a rise of 13,300
compared to the end of 2014. This was due primarily to the acquisition of Veyance Technologies
and additional expansion of production capacity, distribution channels, and research and
development.
The Automotive Group generated sales of €5.9 billion in the first three months of this year. At
8.7 percent, the adjusted EBIT margin was higher than the previous year’s level of 8.3 percent.
The Rubber Group generated first quarter sales of just under €3.7 billion and stabilized the
adjusted EBIT margin at the previous year's level of 17.0 percent of sales.
Continental develops intelligent technologies for transporting people and their goods. As a reliable partner,
the international automotive supplier, tire manufacturer and industrial partner provides sustainable, safe,
comfortable, individual, and affordable solutions. In 2014, the corporation generated sales of approximately
€34.5 billion with its five divisions Chassis & Safety, Interior, Powertrain, Tires, and ContiTech. Continental
currently employs approximately 200,000 people in 53 countries.
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Your contact:
Hannes Boekhoff, phone: +49 511 938-1278
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Financial reports:
http//www.continental-ir.de
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Your contact:
Hannes Boekhoff, phone: +49 511 938-1278
Continental Corporation January 1 to March 31
in € millions 2015 2014
Sales 9,568.9 8,390.1
EBITDA 1,403.2 1,295.8
in % of sales 14.7 15.4
EBIT 977.9 903.2
in % of sales 10.2 10.8
Net income attributable to the shareholders of the parent 656.7 588.3
Earnings per share in € 3.28 2.94
Adjusted sales 1 9,244.4 8,384.9
Adjusted operating result (adjusted EBIT) 2 1,053.9 954.7
in % of adjusted sales 11.4 11.4
Free cash flow -271.3 63.5
Net indebtedness as at March 31 4,098.7 4,242.2
Gearing ratio in % 33.5 43.2
Number of employees as at March 31 3 202.496 182.138
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Your contact:
Hannes Boekhoff, phone: +49 511 938-1278