Conti Predicts Its Sales Will Grow Faster in 2014

Continental AG expects its global sales of auto parts and tires to climb 5% to more than €34 billion ($44.1 billion) in 2013. The German company's annual report also projects that the pace of revenue growth will reach the high single digits next year, unless economic conditions worsen.

Conti's outlook for 2014 is based on the International Monetary Fund's prediction that the global economy will expand more than 4% next year. The company says its forecast also assumes that the eurozone's gross domestic product will increase "considerably" in 2014.

Conti estimates that meeting the anticipated demand will require it to maintain capital spending at last year's level of about 6% of total sales. The company says it will be able to finance that investment from its free cash flow.