03.03.2016
Continental AG DE0005439004
DGAP-News: After Successful 2015: Continental Shapes Digital Future, Backed by Strong Financial Position
DGAP-News: Continental AG / Key word(s): Final Results/Dividend
After Successful 2015: Continental Shapes Digital Future, Backed by Strong
Financial Position
03.03.2016 / 08:30
The issuer is solely responsible for the content of this announcement.
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- Net income improved to EUR2.7 billion / EUR13.64 per share
- Executive Board proposal: Dividend to rise by 15 percent to EUR3.75
- Free cash flow before acquisitions up significantly year-on-year at
EUR2.7 billion
- Strong equity position as basis for new digital business models
- EBIT of EUR4.1 billion / EBIT margin of 10.5 percent
Hanover, March 3, 2016. The technology company Continental has
significantly increased its financial flexibility with a successful fiscal
2015. "Continental is in great shape. With our proven business model, we
generated free cash flow before acquisitions of EUR2.7 billion in 2015. We
increased our equity to EUR13.2 billion, its highest level to date. This
enables us to act tactically and powerfully in a challenging Environment
and to play a major role in shaping the digital future of mobility with our
innovations," said Continental Executive Board chairman Dr. Elmar Degenhart
at the presentation of the preliminary figures for fiscal 2015 in Hanover
on Thursday.
"Backed by a strong financial position, we are tackling the Major
challenges ahead with Continental's typical agility. These challenges
particularly include volatile markets, fluctuations in raw material Prices
and currency exchange rates. In fiscal 2016, we expect to generate a
similarly high level of organic profitable growth of around 5 percent, as
in the past year. We want to take advantage of the opportunities arising
from new, digital mobility concepts in a systematic and focused manner this
year. In doing so, we will concentrate on developing our successful
business model intelligently and tapping new business areas and customers
in an innovative way," said Degenhart. "The start we have made to this year
in a difficult environment confirms our expectations for 2016," he added.
The Continental Executive Board chairman was pleased at the success
achieved in fiscal 2015: "In a challenging environment, we once again
demonstrated our profitability and our strong capacity for growth. Overall,
we achieved an impressive result with profit after taxes of EUR2.7 billion.
This corresponds to EUR13.64 per share, which is 15 percent more than the
year before. The Executive Board is therefore proposing another increase in
the dividend to EUR3.75 per share. This corresponds to a total payout of
EUR750 million and a dividend payout ratio of 27.5 percent."
Continental CFO Wolfgang Schäfer stated that the technology company had
comfortably achieved and in some cases significantly exceeded its annual
targets in 2015: Sales climbed by more than EUR4.7 billion or around 14
percent to EUR39.2 billion. EBIT rose by 23.0 percent year-on-year to
EUR4.1 billion in fiscal 2015. The EBIT margin came to 10.5 percent after
9.7 percent in 2014. Adjusted EBIT, particularly adjusted for changes in
the scope of consolidation, acquisition-related amortization and Special
effects, increased by 15.3 percent year-on-year to EUR4.5 billion in 2015.
This corresponds to 11.8 percent of adjusted sales after 11.2 percent in
2014.
For the current fiscal year, Continental anticipates a growth rate similar
to that achieved in 2015: "We expect organic growth of 5 percent to
approximately EUR41 billion, which means we would again grow faster than
the market with our innovative electronics, sensor and software Solutions
and our industrial products and tires. We also expect to comfortably
achieve an adjusted EBIT margin of over 10.5 percent again," Schäfer
announced. "The 5 percent increase in organic sales is comparable with the
rise of around 4 percent achieved in 2015. These figures do not take into
account foreign exchange rate effects and sales contributions from
acquisitions. These two effects increased sales by an additional 10
percentage points in 2015. The rise in sales thus amounted to 14 percent in
total," explained Schäfer.
He added that Continental was anticipating only a moderate rise in global
vehicle production of 1.5 percent to just under 90 million units. The weak
development of the Russian and Brazilian markets was expected to be more
than offset again by growth in the vehicle markets in Europe and China.
Compared to the previous year, free cash flow before acquisitions posted a
significant increase of more than EUR500 million to EUR2.7 billion.
"Despite cash outflows for acquisitions totaling more than EUR1.2 billion,
primarily for Veyance Technologies and Elektrobit Automotive, free cash
flow after acquisitions amounted to EUR1.4 billion in 2015," emphasized
Schäfer.
Compared to the end of 2014, net indebtedness was up slightly more than
EUR700 million to EUR3.5 billion. The gearing ratio increased only slightly
year-on-year to 26.8 percent (previous year: 25.6 percent). This was due
primarily to the acquisitions of Veyance Technologies and Elektrobit
Automotive.
As at the end of 2015, Continental had liquidity reserves totaling EUR5.2
billion, consisting of cash and cash equivalents of EUR1.6 billion and
committed, unutilized credit lines totaling EUR3.6 billion. This
represented a decline in liquidity of EUR2.0 billion in comparison to the
end of 2014. "This was chiefly due to the acquisitions of Veyance
Technologies and Elektrobit Automotive, the early redemption of the U.S.
dollar bond in mid-September, and the reduction of the syndicated loan from
EUR1.5 billion to EUR350 million," explained Schäfer. "This amount is more
than sufficient for a company of Continental's size and structure," Schäfer
added.
Compared to the previous year, interest expense decreased by EUR19 Million
to EUR341 million. Net interest expense improved by EUR20 Million
year-on-year to EUR246 million in 2015.
Income tax expense for fiscal 2015 amounted to EUR1.1 billion. The tax rate
was 28.2 percent. In fiscal 2016, the tax rate is expected to be around 30
percent.
Continental invested EUR2.2 billion in property, plant and equipment, and
software in 2015. The capital expenditure ratio thus amounted to 5.6
percent after 5.9 percent in the previous year. Research and development
expenses rose by 14.6 percent year-on-year to more than EUR2.4 billion,
corresponding to 6.2 percent of sales, as in the previous year.
The positive business performance also resulted in a growing number of
employees: At the end of 2015, the technology company had approximately
208,000 employees, roughly 19,000 more than the year before. This increase
was also due in particular to the acquisitions of Elektrobit Automotive and
Veyance Technologies, as well as a rise in production.
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 preliminary sales of EUR39.2 billion with its five divisions,
Chassis & Safety, Interior, Powertrain, Tires, and ContiTech. Continental
employs more than 208,000 people in 55 countries.
Press contact
Hannes Boekhoff
Vice President, Media Relations
Continental AG
Phone: +49 511 938-1278
Mobile: +49 170 762 73 26
E-mail: [email protected]
Vincent Charles
Spokesman, Business & Finance Continental AG
Phone: +49 511 938-1364
Mobile: +49 173 314 50 96
E-mail: [email protected]
Press portal: http://www.continental-press.com
Financial reports: http//www.continental-ir.com
Video portal: http://videoportal.continental-corporation.com/
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03.03.2016 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.
The DGAP Distribution Services include Regulatory Announcements,
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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: [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
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