Continental Expects Minor Tire Market Growth
Speaking at the company’s press day in Hannover, Germany, Continental CEO Elmar Degenhart stated that the tyremaker anticipates an increase of 2% in these two regions, markets he said were “very important to our tyre replacement business.” He added that together with further growth effects in Asia and South America, Continental is looking forward to its global replacement tyre business rising 3% this year. In regard to the original equipment segment, the CEO said Continental expects global production of passenger cars, SUVs and light commercial vehicles to increase by about 2%.
Overall, the tyre and automotive component supplier anticipates markets will develop positively in North America and Asia, and the company intends to particularly expand its business in China during 2014.
“We want to grow by 5% and aim to generate sales of approximately €35 billion,” Degenhart said, adding that Continental aims to “comfortably achieve” an EBIT margin above ten per cent in 2014. He reported that the company was “getting off to a solid start” in the first quarter of this year.
“We are reckoning here with a three to 4% rise in sales. The continuously unfavorable development of exchange rates weighs on our performance. It is likely to have a negative impact of up to four percentage points on sales growth in the first quarter of 2014. Adjusted EBIT in the first quarter of 2014 will be higher than the comparable figure in the previous year,” Degenhart said.
In 2013, Continental increased sales 1.8% to €33.3 billion, with EBIT climbing 2.4% to close to €3.3 billion. The EBIT margin was 9.8% and adjusted EBIT rose 3.5% to over €3.7 billion. This corresponds to a ratio of 11.3%. Net income rose by just under 1% to €1.9 billion, with earnings per share of €9.62. (Tyres & Accessories)
Source: SA Treads