Continental

CEO Christian Kötz said Continental could make several billion euros available for takeovers in the tire industry in the medium term if consolidation occurs, provided the deals make financial sense and advance the company. As potential targets he cited specialty tires and a stronger market presence in Asia. Continental generates roughly one billion euros of free cash flow per year after interest and taxes and also sees growth potential in North America, especially for pickups and large SUVs. » Altro su finanzen.net

CEO Christian Kötz describes Continental’s reorientation as a pure tire manufacturer with a stronger global balance, cost focus and faster decision-making. Production in Germany will be retained for specialised products, while mass-market business is shifting abroad because of high costs; expansion of large “megaplants” and investments in energy efficiency are intended to secure competitiveness. Continental sees sales opportunities in the premium segment from the expansion of Chinese automakers and is increasing capacity in Asia and North America; acquisitions remain an option, with financial flexibility to be created through debt reduction and high free cash flow. Supply-chain resilience, raw material costs and regulatory uncertainty remain key challenges. » Altro su faz.net

DZ Bank raises the fair share value for Continental from 79 to 86 euros and keeps the rating at buy. The sale of ContiTech was fixed at a higher company valuation than expected, and a large portion of the cash inflow is to be distributed to shareholders. The transformation into a pure tire manufacturer is on the home stretch, and the remaining core business showed a marked improvement in operating margin in the second quarter. » Altro su finanzen.net