HANOVER, Germany—Continental A.G. has raised its earnings forecast for the full fiscal year 2015 after its Rubber Group posted a successful first half, the German company said when it released its financials on Aug. 4.
The Rubber Group generated about $8.44 billion in sales for the first half of 2015 and its Tire Division posted a 7.2 percent increase in sales at about $5.55 billion. Earnings for the Tire Division also increased by 14.6 percent to about $144 million.
ContiTech A.G., it's non-tire rubber division, reported a 37.7 percent increase in sales to about $2.94 billion compared to the first half of 2014. The firm said Veyance Technologies, now ContiTech's NAFTA base, contributed about $617.1 million to the sales growth.
Earnings were influenced by integration costs and non-recurring expenses for Veyance Technologies totaling about $48.8 million.
“We proved how strong we are in a challenging environment and followed up on the good first quarter of 2015 with further growth of 4.4 percent before changes in the scope of consolidation and exchange rate effects in the second quarter,” Continental Chairman Elmar Degenhart said in the release.
Conti said better-than-expected development in prices for crude oil and natural rubber caused the firm to increase its forecast by more than 15 percent to about 16 percent.
The company said that it was increasing its estimate for the positive effect from lower raw material costs from about $164.5 million to about $219.3 million in the current year, which relates mainly to the Rubber Group. The firm is also lowering its estimate for the average price of natural rubber to $1.58 per kilogram, down from $1.62.
Conti, however, is increasing its forecast for the average price of butadiene to $1 per kilogram, up from 95 cents.