.
- Technology company generates sales increase of around 5%
- Focus on profitable growth
- Good start to fiscal 2014
ContiTech is still on track for success: In 2013, the company owned by the Continental Corporation increased its sales by around 5%, to €3.9 billion (PY: €3.7 billion). "Our strategy is built on sustainable and profitable growth. But we want to be the best company for our customers - in all our quite different applications -, not necessarily the biggest," said Heinz-Gerhard Wente, head of the Continental ContiTech division and chairman of the Executive Board of ContiTech AG, at a press conference at Hannover Messe 2014. "Our decisions in the past year were rigorously in line with this strategic direction." With the agreed purchase of the plastic and rubber specialist Veyance Technologies Inc., the Hanover-based technology company is hoping to give its industrial business a significant boost. Growth also had a positive effect on the number of employees. ContiTech employed 29,725 people at the end of 2013, 1,500 more than in the year before.
EBIT improved from €453.6 million to €462.1 million - an increase of around 2%. This led to a return on sales of 11.9% (PY: 12.2%). EBIT adjusted for special effects rose to €465.3 million (PY: €451.3 million). The return on sales based on this figure was 12.4% (PY: 12.2%). "This means that ContiTech is doing well once again - also in comparison to the other divisions at Continental," said Wente.
At 65%, most of its sales are generated in Europe, with the Americas (North and South America) accounting for 18%. ContiTech feels that it still has room to catch up here. "The planned acquisition of Veyance Technologies Inc. will allow us to improve our market presence in regions in which we are still underrepresented at this time, particularly in North and South America," explained Wente. When Veyance has been fully included in consolidation, proportions for sales will shift to around 46% in Europe and 32% in the Americas.
Investments in Asia and Europe
In the past year, ContiTech has invested in new plants and locations worldwide, in research and development, and in the training of its employees. €166 million (PY: €151 million) was put into software and property, plant, and equipment. "We are where our customers need us," said Wente. The company's has stepped up its presence in Asia in particular. In China, ContiTech acquired Taizhou Fuju Rubber Belt Manufacture, a local drive-belt-producing company, and inaugurated a new production line for automotive interior foils in Zhangjiagang. In South Korea, it built a new hall for air spring production. ContiTech has also expanded its activities in Europe with acquisitions and the construction of new production facilities.
ContiTech is continuing its expansion this year. In addition to the planned acquisition of Veyance, ContiTech bought Inotec, a blow molding specialist, at the start of April. It is developing the site in Vác, Hungary, into a competence center for plastics. And in Brazil, the company is building a new factory for oil-production and gas-extraction hoses. "We are optimistic overall about fiscal 2014. We have already had three promising months," summarized Wente. "ContiTech is again aiming to boost sales another 5% this year. We also want to match the previous year's income return, even if exchange rates negatively impact our results."
Hannover Messe 2014: ContiTech Material Highlights on Show
At the Hannover Messe 2014 (April 7 to 11), ContiTech will showcase its forward-looking technological expertise for industrial applications based on decades of materials and processing expertise. Highlights on display at the roughly 500-square-meter booth (F18 in hall 6) include intelligent functional materials and a polyurethane timing belt with carbon tensile member capable of withstanding the highest of forces. As a global technology company, ContiTech will be showcasing a whole raft of services that go well beyond its broad range of components: ContiTech develops solutions that help save time, maintenance work, and costs. "Engineering Next Level" is the company's guiding concept as it positions itself for the future. "Our intention in doing so is to emphasize that our innovations adhere to technological and social trends, provided that their use is economically reasonable and create added value," said Heinz-Gerhard Wente.
- Technology company generates sales increase of around 5%
- Focus on profitable growth
- Good start to fiscal 2014
ContiTech is still on track for success: In 2013, the company owned by the Continental Corporation increased its sales by around 5%, to €3.9 billion (PY: €3.7 billion). "Our strategy is built on sustainable and profitable growth. But we want to be the best company for our customers - in all our quite different applications -, not necessarily the biggest," said Heinz-Gerhard Wente, head of the Continental ContiTech division and chairman of the Executive Board of ContiTech AG, at a press conference at Hannover Messe 2014. "Our decisions in the past year were rigorously in line with this strategic direction." With the agreed purchase of the plastic and rubber specialist Veyance Technologies Inc., the Hanover-based technology company is hoping to give its industrial business a significant boost. Growth also had a positive effect on the number of employees. ContiTech employed 29,725 people at the end of 2013, 1,500 more than in the year before.
EBIT improved from €453.6 million to €462.1 million - an increase of around 2%. This led to a return on sales of 11.9% (PY: 12.2%). EBIT adjusted for special effects rose to €465.3 million (PY: €451.3 million). The return on sales based on this figure was 12.4% (PY: 12.2%). "This means that ContiTech is doing well once again - also in comparison to the other divisions at Continental," said Wente.
At 65%, most of its sales are generated in Europe, with the Americas (North and South America) accounting for 18%. ContiTech feels that it still has room to catch up here. "The planned acquisition of Veyance Technologies Inc. will allow us to improve our market presence in regions in which we are still underrepresented at this time, particularly in North and South America," explained Wente. When Veyance has been fully included in consolidation, proportions for sales will shift to around 46% in Europe and 32% in the Americas.
Investments in Asia and Europe
In the past year, ContiTech has invested in new plants and locations worldwide, in research and development, and in the training of its employees. €166 million (PY: €151 million) was put into software and property, plant, and equipment. "We are where our customers need us," said Wente. The company's has stepped up its presence in Asia in particular. In China, ContiTech acquired Taizhou Fuju Rubber Belt Manufacture, a local drive-belt-producing company, and inaugurated a new production line for automotive interior foils in Zhangjiagang. In South Korea, it built a new hall for air spring production. ContiTech has also expanded its activities in Europe with acquisitions and the construction of new production facilities.
ContiTech is continuing its expansion this year. In addition to the planned acquisition of Veyance, ContiTech bought Inotec, a blow molding specialist, at the start of April. It is developing the site in Vác, Hungary, into a competence center for plastics. And in Brazil, the company is building a new factory for oil-production and gas-extraction hoses. "We are optimistic overall about fiscal 2014. We have already had three promising months," summarized Wente. "ContiTech is again aiming to boost sales another 5% this year. We also want to match the previous year's income return, even if exchange rates negatively impact our results."
Hannover Messe 2014: ContiTech Material Highlights on Show
At the Hannover Messe 2014 (April 7 to 11), ContiTech will showcase its forward-looking technological expertise for industrial applications based on decades of materials and processing expertise. Highlights on display at the roughly 500-square-meter booth (F18 in hall 6) include intelligent functional materials and a polyurethane timing belt with carbon tensile member capable of withstanding the highest of forces. As a global technology company, ContiTech will be showcasing a whole raft of services that go well beyond its broad range of components: ContiTech develops solutions that help save time, maintenance work, and costs. "Engineering Next Level" is the company's guiding concept as it positions itself for the future. "Our intention in doing so is to emphasize that our innovations adhere to technological and social trends, provided that their use is economically reasonable and create added value," said Heinz-Gerhard Wente.
