DGAP-News: Continental AG: After a Good Start to 2016, Continental Raises Margin Forecast


DGAP-News: Continental AG / Key word(s): Quarter Results/Change in Forecast
Continental AG: After a Good Start to 2016, Continental Raises Margin
Forecast

29.04.2016 / 08:30
The issuer is solely responsible for the content of this announcement.

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- Automotive supplier publishes key data at its Annual Shareholders'
Meeting
- Sales rise three percent to EUR9.85 billion in first quarter
- Adjusted EBIT of EUR1.1 billion
- Forecast for adjusted EBIT margin raised to around 11 percent
- Incoming orders in automotive business up by more than one-third

Hanover, April 29, 2016. The technology company Continental made a good
start to the year in an economic environment that proved difficult as
expected. In the first quarter of 2016, the automotive supplier, tire
manufacturer, and industrial partner increased its sales by three percent
year-on-year to EUR9.85 billion. Negative exchange-rate effects had reduced
this sales growth by 2.1 percentage points. Adjusted EBIT climbed to EUR1.1
billion. At 11.3 percent, the adjusted EBIT margin was higher than the
previous year's level of 10.6 percent.

"In light of the difficult market environment, we had a good start to the
new fiscal year. This was primarily attributable to volume growth in our
Tire division and the stabilization of industrial business at ContiTech. We
expect the good development in the Rubber Group to continue over the
remainder of the year, while the Automotive Group is expected to gain
notable momentum again. For this reason, we are raising our forecast for
the corporation's adjusted EBIT margin from more than 10.5 percent to
around 11 percent," said Dr. Elmar Degenhart, Continental's chairman of the
Executive Board, at the presentation of the key data for the first three
months during the Annual Shareholders' Meeting in Hanover on Friday.
 
"We significantly increased our sales volumes for tires and other products
in the field of rubber and plastics technology compared with the previous
year. Overall, the Rubber Group achieved sales growth of more than five
percent after adjustment for exchange-rate effects and changes in the scope
of consolidation. In the Automotive Group, this figure was almost three
percent, slightly exceeding market growth," explained Degenhart.
 
He added: "As anticipated, the Automotive Group's start to the year was
slightly above the level of 2015. Accelerating growth was slowed by the
relatively sluggish start of production at some of our main customers at
the beginning of the year. Furthermore, project starts and exchange-rate
effects had a negative impact on the Automotive Group compared to the
previous year, but the Group is expected to gain notable momentum as the
year goes on.

Degenhart continues to view the medium-term growth trend in automotive
electronics business as positive: "A very pleasing development is the rise
in order intake in the divisions of our Automotive Group. Compared with the
same period of the previous year, life-time sales acquired in the
Automotive Group increased by more than one-third to a total of over EUR9
billion. This significant growth once again demonstrates our customers'
trust in our systems and technological expertise."

Continental will present its business figures for the first quarter of 2016
on May 4.

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: German, English

Press portal: www.continental-press.com 
Financial reports: www.continental-ir.com
Video portal: http://videoportal.continental-corporation.com 
Media database: http://www.continental-mediacenter.com


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29.04.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Media archive at www.dgap-medientreff.de and www.dgap.de

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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       
 
 
   End of News    DGAP News Service  
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459037 29.04.2016