Continental sees raw materials costs as earnings threat
German automotive supplier Continental said on Thursday it was sticking to its full-year earnings targets even if high raw materials costs made attaining those goals "ambitious".
Continental chief executive Elmar Degenhart said in a statement the group was "right on target and is confirming its forecast for the current fiscal year."
Degenhart said the group was still expecting sales to reach "at least 29.5 billion euros" ($40.4 billion).
In addition, the maker of car parts and tyres said it could still achieve a pre-tax profit margin "of some 10 percent for the full year 2011, even if this must meanwhile be viewed as an ambitious target owing to the higher-than-expected burden we are experiencing from raw material costs," the chairman said.
In the period from July to September, Continental booked bottom-line net profit of 210.7 million euros, up from just 14.1 million euros a year earlier while sales jumped 18.9 percent to 7.714 billion euros.
Taking the first nine monthes, net profit soared by 146 percent to 893.7 million euros on a 17.9-percent rise in sales to 22.593 billion euros, the group said.
© 2011 AFP