Continental lifts financial target on oil and currencies tailwinds image

The company is Europe’s second largest auto parts supplier and a renowned tire maker, and has recently expanded its full year sales prediction for the third consecutive time since 2015 started, buoyed by currency tailwinds and the continued availability of low priced oil.

According to a statement released thursday by the Hanover, Germany-based firm, the revenue is forecasted to grow from last week’s update of around 38.5 billion euros to at least 39 billion euros in 2015. “The first quarter showed that we are growing faster than the markets,” commented Chief Executive Officer Elmar Degenhart in the statement. “Positive effects of foreign exchange are adding to this. We expect this positive development to continue.” This January the company acquired for 1.4 billion euros US company Veyance, which produces hoses and conveyor-belts in a drive to expand its business units outside of the rapidly changing automotive industry. With the euro currency falling around 6 percent against the dollar so far this year and with th estable prices for rubber and overall low oil prices – the firm expects its gains to total around 150 million euros this year.

Continental reported its first quarter earnings before taxes andalso adjusted for special effects jumped 10 percent to 1.05 billio euros – falling in line with the outline previewed in an initial statement issued last month. The adjusted EBIT took 11.4 percent of revenue for the first three months of the year, level with 2014’s earnings margin. For the full year, the company predicts its profitability will be surge above 10.5 percent of total revenue.

Via Bloomberg