Continental's financial preview: Sales up in 1Q
In a preview of its first quarter earnings, Continental Corp. is reporting an increase in sales of 14%, to about 9.6 billion euros, compared to the first quarter of 2014.
The company provided the sales figure April 30, 2015, as part of its annual shareholders meeting. Continental will present its figures for the first quarter of 2015 on May 7.
“Given the still only sluggish development in our sales markets, the start to the current year was very encouraging,” says Elmar Degenhart, Continental’s CEO. “We anticipate that the replacement tire market in Europe will improve in the quarters ahead. As a result of the positive development in new registrations particularly in Western Europe, we also expect an increase in the number of passenger cars produced. Accordingly, our sales and earnings will also continue to improve in the coming quarters.”
Adjusted EBIT rose to around 1 billion euros. Integration costs and one-time expenses for Veyance Technologies Inc. of 37 million euros had a negative effect on the company results in the first quarter, the company said.
During Degenhart’s remarks to shareholders, he said the company expects to see global demand for replacement passenger and light truck tires to increase 3%, to more than 1.1 billion units, in 2015.
He also noted the company has expanded its Best Drive network, adding more than 700 dealers and improving access to France, Spain, Poland, China and the U.S.
To read Degenhart’s full speech, click here.
For more information on Continental, visit www.conti-online.com.