Having gotten off to a very convincing start in the new year, Continental AG, Hanover, confirms its targets for 2008. “We shall set forth our streak of success,” stressed Continental's CEO Manfred Wennemer in Hanover on Thursday. “In the first two months our sales and results far exceeded our forecasts and were well ahead of the previous year's figures. We reaffirm our prognosis:
• overall sales of more than €26.4 billion;
•  a consolidated EBIT margin of 9.3 percent before amortization from the purchase price allocation (PPA) and before integration and restructuring expenses.
In addition we assign the very highest priority to cutting away at our debt. As planned, we shall apply our robust free cash flow to the reduction.”
Wennemer stated that Continental would rigorously boost the enormous value-added potentials the Siemens VDO acquisition opened up. “We still look to synergy effects of more than €300 million as of 2010. As previously announced, we shall, this year, tackle and wrap up the integrations projects. Above and beyond this we plan to undertake certain restructuring measures. This will affect the Powertrain division in particular, in which we have pinpointed considerable optimization potential. In absolute terms the restructuring requirement is well within the framework established. As expected, integration and restructuring costs for 2008 and 2009 will, in their entirety, remain in the lower three-digit million range.”
The Continental CEO drew attention to the fact that the Powertrain division disposes of a host of highly innovative products with excellent growth prospects in the future. The more the price of oil and fuel rises, the better the sales outlook is for ultra-efficient injection technologies, turbocharger or hybrid systems, to cite just one example.”
Wennemer underscored the fact that there is no basis for the current speculation about an alleged reopening of negotiations on the Siemens VDO transaction. “In view of the facts and figures before us, we see absolutely no reasons at this time for such a move! The potential to be realized with the acquisition is enormous! As in the case of previous purchases, we shall prove that we completely master the fine art of value-creating integration.”