Conti Earnings Soar 52%

Continental AG netted €1.9 billion ($2.5 billion) in 2012 compared with €1.2 billion ($1.6 billion) the year before. Revenue climbed 7% to €32.7 billion ($42.6 billion).

Adjusted earnings before interest and taxes grew to 10.8% of revenue last year from 10% in 2011. Free cash flow more than tripled to €1.7 billion ($2.2 billion).

Conti's auto parts unit boosted EBIT 4% year on year to €1.1 billion ($1.4 billion) in 2012. Parts sales increased 6% to €19.5 billion ($25.4 billion). EBIT from the tire business jumped 29% to €2.1 billion ($2.7 billion). Tire revenue rose 9% to €13.3 billion ($17.3 billion).

For 2013, the company warns that first-quarter revenue will probably drop 1%-3% from a year earlier because of an expected 12% decline in vehicle production in Europe. But Conti confirms its full-year forecast for sales growth greater than 5% and adjusted EBIT of more than 10% of revenue.