Continental said it expects 2014 to bring a growth in sales if economy doesn’t deteriorate.
Continental is “likely to post high single-digit growth in sales again in 2014, ” the Hanover, Germany-based company said in its annual report today, March 25th.
Continental kept its target for 2013 even if the auto market in Europe declined more than the analysts’ predictions for the first quarter. The company expects sales to increase 5% in 2013 and plans to reach adjusted earnings before interest and taxes of more than 10% of revenue. Europe’s second- largest maker of auto parts managed to avoid the effects of the crisis by following BMW, VW and Mercedes into growing markets such as the US and China. The company also managed to attract high-end customers that are willing to pay more for Continental’s emergency braking systems, safety sensors and fuel-injection technology.
The International Monetary Funds predicts that global economy will increase with more than 4% in 2014 and that economy in the euro area will see a significant pickup.
“To accompany this growth with sufficient capacity, investments equivalent to roughly 6 percent of consolidated sales would be necessary, although we would still finance these entirely from free cash flow,” Continental said.