German auto supplier Continental AG has decided to be optimistic and announced its forecast for next year sees growing profitability and sales thanks to increased world demand for cars.
The parts maker is also confident it has positioned itself well to take advantage of the latest trends – in areas such as emission-lowering technologies or driver-assistance systems.
The automotive group has a vastly variable product line-up that spans from tyres and brakes to vehicle information management systems and has tapped expanding growth as automakers increasingly desire suppliers to produce more sophisticated technology. The group has also benefited from the 13 months of increased car sales in its core European region, as the continent is finally (but slowly) emerging from the six-year registration slump triggered by the last economic crisis.
“The company is well positioned in the mega trends of the automobile industry,” claims chief financial officer Wolfgang Schaefer even as the company had a writedown on its powertrain unit that lowered by 6% third-quarter adjusted earnings before interest and tax (EBIT). The executive said the company’s forecast is nevertheless positive for the prospects of this year and the next. Its full-year forecast for sales sees them growing from 33.3 billion in 2013 to a record 34.5 billion euros – even as currency issues shaved off around 650 million euros.