Conti Boosts Net 65%, Hikes Full-Year Outlook

Continental AG posted net earnings of €520 million ($639 million) in the quarter ended June 30 compared with €315 million ($387 million) million) a year earlier.

Revenue climbed 9% to €8.2 billion ($10.1 billion). The company says strong sales of electronic products to booming Germany luxury brands such as BMW and Volkswagen's Audi unit are shielding it from the worst of Europe's auto downturn.

Earnings before interest and taxes jumped 30% to €843 million ($1 billion) for an 11.1% return on sales. The maker of tires and auto parts credits easing raw materials costs for some of the improvement.

Conti boosted its 2012 forecast for profit margin and revenue, citing robust second-quarter results and easing raw materials costs. The company expects group sales to rise more than 7% to more than €32.5 billion ($40 billion) vs. its earlier estimate of a 5% gain.

Conti predicts its EBIT margin will surpass last year's 10.1% of revenue rather than matching it as previously expected. The company has slashed its estimate for commodity costs this year 60%, which would save an estimated €100 million ($123 million).