Automotive supplier Continental AG (CTTAY.PK) on Wednesday reported a significant increase in profit for the first nine months of the year and backed its full year forecast even as uncertainty continued in the sales markets.
Continental Executive Board Chairman Dr. Elmar Degenhart said, "Based on the first nine months, we still expect consolidated sales to increase by more than 7% to more than €32.5 billion for fiscal 2012. We also target to achieve an EBIT margin above last year's very strong level, as previously announced."
The company had said in August that it expects an increase in full-year consolidated sales of more than 7 percent to over 32.5 billion euros and that adjusted EBIT margin is expected to top the level achieved in 2011 due to slightly lower negative impact from raw material costs.
Net income attributable to shareholders of the parent for the 9-month-period jumped 62.5 percent to nearly 1.5 billion euros. Earnings per share jumped to 7.26 euros from 4.47 euros per share in the previous year.
Sales climbed 9.1 percent to 24.6 billion euros. Sales in the Automotive Group improved to 14.8 billion euros while the Rubber Group generated 9.9 billion euros.
EBIT rose 22.8 percent to 2.4 billion euros and margin advanced to 9.6 percent from 8.5 percent. Adjusted EBIT climbed 19.5 percent year-on-year to around 2.7 billion euros.
Degenhart added that the start to the fourth quarter has not given the firm any additional major cause for concern. Consolidated sales from October to December are likely to be at least as high as in the third quarter.
On a cautious note, he said, "...the road is becoming rockier and we must keep our eye on the development of the markets. We are currently benefiting considerably from our international positioning and compensating for the declines in southern Europe in particular with growth in North America and Asia."
The stock advanced 3.4 percent on Tuesday to close at 79.59 euros on a volume of 812,108 shares.
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