Continental sees rising sales in 2014 image

Continental AG, Europe’s second-largest auto parts maker, plans a fifth consecutive year of record sales after deliveries of parking-assistance and braking electronics helped revenue rise 1.7 % in 2013.

The manufacturer, also Europe’s second-largest tiremaker, has focused on developing components that help automakers reduce vehicle emissions, increase auto safety and enable communication links. Continental was able to partly bypass effects of an industrywide slump in Europe by following German customers VW, BMW and Daimler AG into growing markets such as China and the U.S.

Sales this year will jump 5 % to 35 billion euros ($47.8 billion), Hanover, Germany-based Continental said today in a statement. Full-year 2013 revenue increased to 33.3 billion euros. Adjusted earnings before interest and taxes in 2013 totaled 3.7 billion euros, or 11.2 % of sales, beating the company’s forecast of at least a 10.5 % margin.

Continental seeks to “comfortably achieve a double-digit adjusted-Ebit margin” in 2014 as the manufacturer expands faster than the car industry’s 2.4 percent production growth to 85 million vehicles, Chief Executive Officer Elmar Degenhart said in the statement today. Earnings on that basis totaled 3.52 billion euros in 2012, or a margin of 10.8 %.

Continental rose as much as 2.9 % and was trading up 2.5 % at 162 euros as of 10:06 a.m. in Frankfurt. The stock, trading at the highest prices since at least August 1992, has surged 93 % in the past 12 months, valuing the company at 32.3 billion euros.

Via Bloomberg