DGAP-News

Continental AG: Continental Raises Cash Flow Forecast for Current Fiscal Year

DGAP-News: Continental AG / Key word(s): Interim Report/Quarter Results
Continental AG: Continental Raises Cash Flow Forecast for Current Fiscal
Year

04.05.2016 / 08:30
The issuer is solely responsible for the content of this announcement.

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* Sales up by three percent at EUR9.85 billion after three months
* Net income rises by 12 percent to EUR734 million or EUR3.67 per share
* Free cash flow before acquisitions increases considerably to EUR567
million
* Forecast for free cash flow before acquisitions raised to at least EUR2
billion
* EBIT exceeds EUR1 billion

Hanover, May 4, 2016. After a good first quarter in fiscal 2016, the
technology company Continental is raising its forecast for free cash flow
before acquisitions for the year as a whole: "In the first few months of
this year, we again managed to achieve a considerable increase in free cash
flow before acquisitions. By the end of the year, this figure is expected
to climb to at least EUR2 billion. We had previously expected a figure of
at least EUR1.8 billion," said Dr. Elmar Degenhart, Continental's chairman
of the Executive Board, at the presentation of the business figures for the
first quarter on Wednesday.

In the first quarter of 2016, the automotive supplier, tire manufacturer,
and industrial partner boosted its sales by three percent year-on-year to
EUR9.85 billion. At the same time, net income attributable to the
shareholders of the parent rose by 12 percent to EUR734 million. Earnings
per share rose to EUR3.67 after EUR3.28 in the same period of the previous
year.

As at March 31, the operating result (EBIT) had increased year-on-year by
6.4 percent to over EUR1 billion. This equates to a margin of 10.6 percent
compared with 10.2 percent in 2015. Adjusted EBIT climbed by 8.4 percent
year-on-year to EUR1.1 billion. At 11.3 percent, the adjusted EBIT margin
was therefore 0.7 percentage points higher than the level for the first
three months of 2015.

"Our strong cash flow enabled us to reduce our net indebtedness in the
first quarter of this fiscal year by EUR459 million to EUR3.1 billion
overall, compared to the end of 2015. The gearing ratio thus came to 23.1
percent. This means we have almost achieved our medium-term goal of getting
this ratio below the 20-percent threshold," explained Chief Financial
Officer Wolfgang Schäfer. Compared with the same period of the previous
year, net indebtedness was even EUR1 billion less. Net indebtedness had
increased in the first quarter of 2015, primarily as a result of the