Continental is benefiting from declining financing costs

The automotive supplier Continental has increased its net profit in the first quarter due to lower financing costs also significantly : The Mutual Group improved its profit after tax and minority interests compared to the same period by about a third . The company also benefited in the initial quarter of this year from the growth of the market for high-priced cars. The key figures of the current fiscal , had informed about the Conti already the end of April , but rose less significantly than net income.
The manufacturer has benefited particularly clear by the recent sales success of European car manufacturers, because the company 's original equipment tire for many vehicles . The Group also provides about electronic components for assistance systems , as they come , especially in the premium segment for use .
At the beginning indicated that they were in the net income of Conti declining financing costs. After a refinancing of high yield bonds over the past year , the interest expense in the first quarter was around 36 million euro to 114 million euro decline in , the company said . Conti has also claims to its existing lending volume replaced late April with a new syndicated loan.
The Hanoverian increased their net income , among other things , against this background in the first quarter of 441 million euros in the same period last year to 588 million euros . Each share is thus unnecessary in a basic loss of 2.94 euros . Analysts had estimated net earnings per share prior to the announcement of the end of April Continentals Key data on average to 2.88 euros .
The operating figures , however, had reduced the euphoria of some industry experts about 2 weeks ago. Adjusted earnings before interest and taxes ( EBIT) fell from January to March with 953 million euros compared to the same period last year by nearly one-fifth better. Sales rose at the same time by 4.4 per cent to around 8.4 billion euros , so that the adjusted EBIT margin of 10 percent improved to 11.35 percent. On average, but analysts had predicted an even much higher adjusted EBIT of 975 million euros, according to information gathered by Dow Jones Newswires estimates.
Even a forecast increase had the mood can not improve on the stock market in late April : Conti said the day of the Annual General Meeting for the year or part thereof as measured by adjusted EBIT requires a margin of 10.5 percent. Previously, the company had made ​​a profit margin of 10.0 percent in prospect. Market participants had obviously hoped for more. Also on Tuesday remained Conti at the lookout . " We want to continue on the path in the coming months ," the company quoted its CEO Degenhart .
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