Continental Ag is raising its earning forecasts for 2015 following a strong first half of the year.
The company is aiming to achieve an adjusted EBIT margin, operating earnings over operating sales, of 11%, according to the Continental. Previously, Conti had anticipated an EBIT margin of 10.5%.
“We proved how strong we are in a challenging environment and followed up on the good first quarter of 2015 with further growth of 4.4% before changes in the scope of consolidation and exchange rate effects in the second quarter,” said Elmar Degenhart, chairman of Continental Ag’s executive board, when results were announced.
For the first half of 2015, Continental reported a 15.8% sales increase year-over-year to €19.6 billion. Additionally, EBIT increased 19.4% year-over-year to €2.1 billion.
The company also reported sales of €11.9 billion for its automotive group and €7.7 billion for its rubber group. Both are increases over 2014.
Due to the company’s financial strength it will continue to be able to finance the acquisition of Veyance Technologies and Elektrobit Automotive GmbH with its own funds, said Wolfgang Schäfer, Conti’s CFO.
