The third-quarter earnings rose 11 percent for the German auto parts and tire maker, with strong results in Europe and the US.
The German automotive supplier and tire manufacturer said its third-quarter earnings rose 11 percent, adjusting its margin before interest and tax for “more than 11 percent” to €1.8 billion – €2 billion. Continental sales rose by 14.2 percent year-on-year to €29.2 billion in the first three quarters of 2015, with a projection for 2015 of more than €39 billion. “Overall, we can look back at a solid third quarter in a difficult environment. We compensated for both the slower growth in passenger-car production in China and the decline in industrial business with steady growth in Europe and North America,” said the chairman of Continental’s Executive Board, Dr. Elmar Degenhart.
If Continental has high levels of optimism for their quarterly report, analysts are not sharing the same level of enthusiasm, expecting a stronger performance of the tires division: “One can say without any ifs or buts that the important numbers – earnings before interest and tax, net profit and sales – were below expectations,” said Bankhaus Metzler analyst Juergen Pieper. In the first nine months of this year, the Automotive Group generated sales of €17.6 billion, while The Rubber Group generated sales of €11.7 billion. Regarding Volkswagen scandal, Continental said it has not been affected yet, as VW is one of the supplier’s five largest customers by sales, buying engine-control parts and safety systems from the Hanover-based firm. “We have not yet been given a concrete number (for cost savings) by Volkswagen,” finance chief Wolfgang Schaefer said in an interview. “Our talks with VW are running as always.”
Via Automotive News Europe