Conti to grow even in 'stagnant' market

ERJ staff report (TB)

Frankfurt, Germany -- Despite anticipating an economic slowdown next year, Continental AG is confident it can grow in 2012 by roughly 5 percent “even in a stagnant market,” Conti CEO Elmar Degenhart said this week at the 64th Frankurt Motor Show.

Underscoring Conti's outlook, Degenhart said the company is raising capital expenditures this year by 36 percent and increasing spending on research and development by 10 percent, while adding 10,000 employees worldwide.

“Continental's innovative prowess enables it to play an active role in shaping the megatrends in the branch,” Degenhart told a press gathering. “The company can thus enjoy sustained profitability and grow at a faster-than-average pace in emerging markets. Our innovations guarantee efficiency and high quality while at the same time safeguarding our future as a leading international automotive supplier.”

Degenhart affirmed the company´s outlook for 2011-sales growth of at least 10 percent and an adjusted return on sales of 10 percent-while at the same time saying, “It remains to be seen whether the financial markets' unsettled state” will affect the real economy.

“In the future, individual mobility will be characterised by increasing variety and ever greater complexity,” Degenhart said. “In the long run, only those adept at mastering this complexity and capable of translating this mastery into a steady stream of market innovations in step with megatrends in the automotive industry stand a chance of being successful on the world market.”

As an example of Conti's innovations, Degenhart pointed to the debut of a synchronous machine for all-electric vehicles that contains no rare earth materials. The drive will equip Renault S.A.'s electric vehicle fleet.

Other innovations being highlighted at the IAA (Internationale Automobil-Ausstellung) in Frankfurt include a stereo vehicle camera system designed to improve obstacle recognition, optimised injection systems for diesel and gasoline engines for reduced emissions and greater efficiency, a lower rolling-resistance ContiEcoContact 5 tyre and an integrated and encrypted cell-phone car key.

From Tire Business (A Crain publication)