DGAP-News: Continental AG / Key word(s): Quarter Results/Miscellaneous Continental Increases Sales Expectations for 2015 to More Than EUR39 Billion After Good First Quarter 07.05.2015 / 08:30 --------------------------------------------------------------------- Continental Increases Sales Expectations for 2015 to More Than EUR39 Billion After Good First Quarter * Sales grow 14 percent to EUR9.6 billion after three months * Net income for the period rises 12 percent to EUR657 million or EUR3.28 per share * Free cash flow before acquisitions increases significantly to EUR318 million * EBIT at EUR978 million Hanover, May 7, 2015. After a successful start to the new year, the Continental Corporation is increasing its sales forecast for the current fiscal year from about EUR38.5 billion to more than EUR39 billion. "The first quarter showed that we are growing faster than the markets. Positive effects of foreign exchange are adding to this. We expect this positive development to continue. Furthermore, we anticipate a tailwind of around EUR150 million for the year as a whole due to the ongoing stable price trend for rubber and the lower price of crude oil. We therefore expect to comfortably achieve an adjusted EBIT margin of more than 10.5 percent in the current year," said Continental CEO Dr. Elmar Degenhart on Thursday when presenting the business figures for the first quarter. In the first quarter of 2015, sales of the international automotive supplier, tire manufacturer and industrial partner climbed by 14 percent, year-on-year, to EUR9.6 billion. At the same time, the net income attributable to the shareholders of the parent increased by 12 percent to EUR657 million. Earnings per share rose accordingly to EUR3.28 compared with EUR2.94 in the same period of the previous year. As at March 31, EBIT also increased by 8.3 percent, year-on-year, to EUR978 million. This equates to a margin of 10.2 percent compared with 10.8 percent in the previous year. The adjusted EBIT climbed by 10.4 percent, year-on-year, to more than EUR1 billion. At 11.4 percent, the adjusted EBIT margin was therefore at the same level as the first three months of 2014. Furthermore, Continental continued to generate strong cash flow as in the previous fiscal year. "Free cash flow before acquisitions increased significantly, year-on-year, from EUR81 million to EUR318 million or by EUR237 million. Taking into account the acquisition of Veyance Technologies that closed in January, free cash flow amounted to -EUR271 million. We are very confident that we can generate free cash flow before acquisitions of at least EUR1.5 billion for the year as a whole," said Chief Financial Officer Wolfgang Schäfer. Net indebtedness of the Continental Corporation at the end of the first quarter was EUR4.1 billion. This is EUR144 million less than a year ago. Net indebtedness increased by around EUR1.3 billion compared with the end of 2014, following the closure of the Veyance acquisition. Our gearing ratio was 33.5 percent at the end of March 2015. As at 31 March 2015, Continental had around EUR6.7 billion of liquidity reserves, comprising approximately EUR2.4 billion in cash and cash equivalents and committed unutilized credit lines of approximately EUR4.3 billion. Interest expense fell in the first three months of 2015 by EUR23 million to EUR84 million. Net interest expense declined by EUR24 million to EUR56 million. In the first three months, Continental invested a total of EUR357 million in property, plant and equipment, and software. The capital expenditure ratio therefore amounted to 3.7 percent in comparison to 4.1 percent in the same period of the previous year. Continental increased its research and development expenditure by 18.2 percent, compared with the first quarter of 2014, to EUR643 million. This corresponds to 6.7 percent of sales compared with 6.5 percent a year ago. At the end of the first quarter, Continental employed 202,496 people, representing a rise of 13,300 compared to the end of 2014. This was due primarily to the acquisition of Veyance Technologies and additional expansion of production capacity, distribution channels, and research and development. The Automotive Group generated sales of EUR5.9 billion in the first three months of this year. At 8.7 percent, the adjusted EBIT margin was higher than the previous year's level of 8.3 percent. The Rubber Group generated first quarter sales of just under EUR3.7 billion and stabilized the adjusted EBIT margin at the previous year's level of 17.0 percent of sales. 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 2014, the corporation generated sales of approximately EUR34.5 billion with its five divisions Chassis & Safety, Interior, Powertrain, Tires, and ContiTech. Continental currently employs approximately 200,000 people in 53 countries. Press contact: ________________________________________ Hannes Boekhoff Vice President, Media Relations Continental AG Phone: +49 (0) 511 938-1278 Cell: +49 (0) 170 762 73 26 E-mail: [email protected] Vincent Charles Spokesman, Business & Finance Continental AG Phone: +49 (0) 511 938-1364 Cell: +49 (0) 173 314 50 96 E-mail: [email protected] ________________________________________ This press release is available in the following languages: German, English ________________________________________ Press portal: www.continental-presse.de Financial reports: http//www.continental-ir.de Video portal: http://videoportal.continental-corporation.com Media database: http://www.continental-mediacenter.com ________________________________________ --------------------------------------------------------------------- 07.05.2015 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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: [email protected] 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 --------------------------------------------------------------------- 354265 07.05.2015