German automotive supplier Continental AG (CTTAY.PK) Monday reported a 7 percent increase in fiscal 2012 sales, as expected, despite slumping auto markets in Europe. Going forward, the company projects a 5 percent increase in sales, but a slight increase in production of passenger cars.
For the year 2012, the company's sales increased over 7 percent to nearly 32.7 billion euros. At about 10.7 percent, the adjusted earnings before interest and tax or EBIT margin topped last year's 10.1 percent.
For the year 2013, the company said it is targeting for sales growth of nearly 5 percent to more than 34 billion euros. 'although indicators on the auto markets are more guarded at present than they were a year ago'. Meanwhile, the company expects adjusted EBIT margin for the year to remain above 10 percent.
While disclosing initial preliminary key figures at the Detroit Auto Show in the US, Chairman Elmar Degenhart noted, "In 2013, we expect global production of passenger cars with a gross weight of up to six tons to increase from around 80 million units in 2012 to a mere 82 million. There is, however, still a great deal of uncertainty regarding the course of passenger car production and other of Continental's key sales markets."
Degenhart further said, "'We shall very likely not quite be able to hold to our tempo in the successful year 2012. To be sure, we already came very close to meeting many of our medium-term financial targets in 2012. In any event, we shall further reduce our indebtedness in the current year."
The company is slated to release its preliminary business figures on March 7.
In October, Continental had 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.
Degenhart then had noted that the road was becoming rockier and that the company must keep its eye on the development of the markets. He also said that the firm was benefiting considerably from its international positioning and compensating for the declines in southern Europe in particular with growth in North America and Asia.
On Frankfurt's Xetra, Continental shares are currently trading at 84.70 euros, down 0.36 euros or 0.42 percent.
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