DGAP-News: Continental AG / Key word(s): Interim Report/Quarter Results
2016-05-04 / 08:30
The issuer is solely responsible for the content of this announcement.
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* Sales up by three percent at EUR9.85 billion after three months
* Net income rises by 12 percent to EUR734 million or EUR3.67 per share
* Free cash flow before acquisitions increases considerably to EUR567
million
* Forecast for free cash flow before acquisitions raised to at least EUR2
billion
* EBIT exceeds EUR1 billion
Hanover, May 4, 2016. After a good first quarter in fiscal 2016, the
technology company Continental is raising its forecast for free cash flow
before acquisitions for the year as a whole: "In the first few months of
this year, we again managed to achieve a considerable increase in free cash
flow before acquisitions. By the end of the year, this figure is expected
to climb to at least EUR2 billion. We had previously expected a figure of
at least EUR1.8 billion," said Dr. Elmar Degenhart, Continental's chairman
of the Executive Board, at the presentation of the business figures for the
first quarter on Wednesday.
In the first quarter of 2016, the automotive supplier, tire manufacturer,
and industrial partner boosted its sales by three percent year-on-year to
EUR9.85 billion. At the same time, net income attributable to the
shareholders of the parent rose by 12 percent to EUR734 million. Earnings
per share rose to EUR3.67 after EUR3.28 in the same period of the previous
year.
As at March 31, the operating result (EBIT) had increased year-on-year by
6.4 percent to over EUR1 billion. This equates to a margin of 10.6 percent
compared with 10.2 percent in 2015. Adjusted EBIT climbed by 8.4 percent
year-on-year to EUR1.1 billion. At 11.3 percent, the adjusted EBIT margin
was therefore 0.7 percentage points higher than the level for the first
three months of 2015.
"Our strong cash flow enabled us to reduce our net indebtedness in the
first quarter of this fiscal year by EUR459 million to EUR3.1 billion
overall, compared to the end of 2015. The gearing ratio thus came to 23.1
percent. This means we have almost achieved our medium-term goal of getting
this ratio below the 20-percent threshold," explained Chief Financial
Officer Wolfgang Schäfer. Compared with the same period of the previous
year, net indebtedness was even EUR1 billion less. Net indebtedness had
increased in the first quarter of 2015, primarily as a result of the
acquisition of Veyance Technologies. At the end of the first quarter of
2015, the gearing ratio was still at 33.5 percent.
As at March 31, 2016, Continental had a liquidity buffer of EUR5.45
billion, comprising EUR1.7 billion in cash and cash equivalents and EUR3.8
billion in committed, unutilized credit lines. The revolving credit line of
EUR3 billion concluded in April 2014 (part of the syndicated loan with an
originally committed total volume of EUR4.5 billion) was extended for a
further year in April 2016. This financing commitment is now available to
Continental until April 2021. The term loan of EUR1.5 billion included in
the syndicated loan was fully repaid early by the end of March 2016.
Interest expense totaled EUR59 million in the first three months of 2016.
"At EUR34 million, interest expense resulting from bank borrowings, capital
market transactions, and other financing instruments was EUR14 million
lower than the prior-year figure. The major portion related to expense of
EUR21 million from the issued bonds," Schäfer explained. Net interest
expense improved by EUR22 million year-on-year to EUR34 million in the
first quarter of 2016.
In the first three months of the year, Continental invested a total of
EUR398 million in property, plant and equipment, and software. The capital
expenditure ratio thus amounted to 4.0 percent after 3.7 percent in the
comparative period of the previous year. Continental increased its research
and development expenses to fund the start of numerous projects. Compared
with the first quarter of 2015, this figure went up by 11.4 percent to
EUR716 million. This corresponds to a ratio of 7.3 percent of sales after
6.7 percent a year ago.
At the end of the first quarter, Continental had 212,417 employees, which
is 4,500 more than at the end of 2015. This is attributable mainly to the
further expansion of production capacity, sales channels, and research and
development.
In the first three months of this year, the Automotive Group achieved sales
of EUR6.0 billion. The adjusted EBIT margin was 7.6 percent.
In the first quarter of 2016, the Rubber Group generated sales of EUR3.85
billion and increased the adjusted EBIT margin by 3.1 percentage points
year-on-year to 17.8 percent.
Continental develops intelligent technologies for transporting people and
their goods. As a reliable partner, the international automotive supplier,
tire manufacturer, and industrial partner provides sustainable, safe,
comfortable, individual, and affordable solutions. In 2015, the corporation
generated sales of EUR39.2 billion with its five divisions, Chassis &
Safety, Interior, Powertrain, Tires, and ContiTech. Continental currently
employs more than 212,000 people in 55 countries.
Press contact
________________________________________
Vincent Charles
Spokesman, Business & Finance Continental AG
Phone: +49 511 938-1364
Cell: +49 173 314 50 96
E-mail: vincent.charles@conti.de
Dr. Felix Gress
Senior Vice President
Corporate Communications
Continental AG
Phone: +49 511 938-1485
E-mail: felix.gress@conti.de
________________________________________
This press release is available in the following languages: Chinese, Czech,
Dutch, English, French, German, Hungarian, Japanese, Korean, Portuguese
(Brazil), Portuguese (Portugal), Romanian, Russian, Slovakian, Spanish
________________________________________
Press portal:
www.continental-press.com
Financial reports:
www.continental-ir.com
Video portal:
http://videoportal.continental-corporation.com
________________________________________
Media database: www.continental-mediacenter.com
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2016-05-04 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Continental AG
Vahrenwalder Straße 9
30165 Hannover
Germany
Phone: +49 (0)511 938-1068
Fax: +49 (0)511 938-1080
E-mail: ir@conti.de
Internet: www.conti.de
ISIN: DE0005439004
WKN: 543900
Indices: DAX
Listed: Regulated Market in Frankfurt (Prime Standard), Hamburg,
Hanover, Stuttgart; Regulated Unofficial Market in Berlin,
Dusseldorf, Munich; Terminbörse EUREX; Luxemburg, SIX
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