Automotive electronics biz boosts Continental growth

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Technology company Continental is raising its sales forecast for the current fiscal year again on the basis of good half-year figures. "Our business with innovative technologies for assisted and automated as well as with connected and efficient driving once again grew faster than the global market for passenger cars and light commercial vehicles. Sales growth in this area came to 10 percent. For this reason, we are raising our forecast for the corporation's sales by €500 million to more than €44 billion," said Dr. Elmar Degenhart, Continental's chairman of the Executive Board, on Thursday at the presentation of the business figures for the first six months of the year. The order intake for the Automotive Group totaled more than €19.5 billion after the first six month.

"Our Tire and ContiTech divisions also increased their sales by more than 9 percent altogether, including the contribution of the Hornschuch Group, which has been consolidated in the ContiTech division since March. With regard to earnings, the headwind in both divisions increased as expected as a result of sharp increases in raw material costs, which had a negative impact of €300 million on the Rubber Group's earnings in the first half of the year," said Degenhart, explaining the half-year results for the Rubber Group. However, Degenhart expects the price increases, mainly for natural and synthetic rubber, to decline again over the second half of the year. Overall, the technology company anticipates a total negative impact of approximately €450 million as at the end of the year. This is €50 million less than the amount forecast at the beginning of the year.

In Degenhart's view, the half-year results confirm the expectations for the current fiscal year: "We are reiterating our earnings outlook and are pleased to be able to increase our sales forecast thanks to the growth momentum in the automotive business. We are confident that the Rubber Group's contribution to earnings in the second half of the year will be higher than in the previous year again." Degenhart continues to regard the market environment as challenging. "Economic and political uncertainties are notably influencing market activities. Over the past few years, we have further improved our agility and flexibility - and we are now benefiting from this," he added.

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