Good Start To The Year For Conti

2023 Author: Eric Donovan | [email protected]. Last modified: 2023-11-27 05:39

Despite the profound changes within the automotive industry, Continental is optimistic about the current year. The supplier is prepared for any problems, said Conti boss Elmar Degenhart.

The automotive supplier Continental wants to recharge its batteries in the current year for the profound change in the industry. Trends such as autopilot functions, Internet services at the wheel or electromobility are increasingly turning the automotive world upside down, the company said when it presented its balance sheet on Thursday.

As an example, CEO Elmar Degenhart named assistance systems that initially relieve the driver and should take control over the next decade. "In 2020 we will generate every tenth euro in our automotive business, in other words more than three billion euros, with products that enable automated driving," he said.

Good summer tire business

Thanks to a good summer tire business, the start of the year was solid. “The start of the year confirms our expectations for 2016 in a difficult environment,” said Degenhart. There are still problems such as insecure markets, such as Brazil and Russia, or fluctuating raw material prices and exchange rates. But Conti is prepared for this.

Sales are expected to grow by 5 percent to just under 41 billion in 2016. Last year, revenues rose by 14 percent to a good 39 billion euros, but 10 percentage points of this was due to exchange rate effects and takeovers. The bottom line was that the Dax Group's profit grew by 15 percent to 2.73 billion euros. The dividend is now also to rise by 15 percent to EUR 3.75.

Takeovers still possible

The profitability in relation to sales should only decrease slightly in 2016. Conti's CFO Wolfgang Schäfer issued the target of a good 10.5 percent. It says that Conti wants to make a profit of EUR 10.50 before interest and taxes from a turnover of EUR 100 without special effects.

The group still believes takeovers are possible, but did not provide any details. In the more recent past, Continental had strengthened itself externally with the purchase of the rubber and plastics expert Veyance and the special software company Elektrobit-Automotive. According to Schäfer, Conti is still looking for a new partner to manufacture batteries.

Fleck in the final quarter of 2015

The strong 2015 balance sheet got a mark in the final quarter, in which Conti unexpectedly around 90 million euros in business with the mining and oil industry. Schäfer did not rule out further depreciation in the ailing areas worldwide. Conti-Tech supplies, for example, conveyor belts for mines or hoses for the oil industry.

Schäfer expects crude oil prices to rise from the summer of the big profit maker. Oil is a raw material for tires. The unusually low rubber prices are also likely to pick up in the medium term.

Degenhart identified the development of new business areas and customers as one of the most important goals, such as technology for connected cars. With a view to electromobility, Degenhart doubts the sense of a premium for private buyers. The bonus is better off with delivery vans, taxis or fleet vehicles. Politicians and car manufacturers in this country are currently working on a funding concept. (dpa)