Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CONTINENTAL AG. We currently have 12 research reports from 1 professional analysts.
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Continental and Nexteer form 50/50 joint-venture
11 Jan 17
Nexteer, a US producer of advanced steering and driver assistance components, controlled by Chinese ‘Pacific Century Motors’, and Continental jointly intend to develop state-of-the-art electronic brake and steering systems that can go into self-driving cars. The management teams are confident that the joint-venture can start in Q1 17. What is unclear is the timing of the first product launches.
Management’s guidance with no surprises
09 Jan 17
Continental has released first indications for 2016 and guidance for 2017. Last year’s revenue amounted to €40.5bn and the adjusted EBIT margin was around 10.7%. As last year’s accounts were burdened with additional costs (e.g. cartel fines) of some €500m, the stated margin was in the vicinity of 9.5%. The numbers are in line with our projected revenue of €40.46bn and a stated EBIT margin of 9.5%. Management sees revenue rising by 6% to €43bn in 2017 and the adjusted EBIT margin to come in at above 10.5%. While our calculations currently see revenue rising to €41.6bn, we expect a stated margin of 10.3%, i.e. the difference between the two margins leaves hardly any room for ‘exceptional’ costs as occurred in 2016.
Tyre margin has started to retreat in Q3
10 Nov 16
Whereas Continental’s 9M revenue number of just above €30bn (+2.8%) was in line with our expected €29.94bn, the profit numbers are clearly lower than what we had anticipated after we included the above profit warning. EBIT fell by 42% to €597m in Q3 and by 10% to €2.89bn while our number was €3.13bn. Net earnings fell by 41% to €378m and 3.2% to just above €2bn, respectively, while our forecast was €2.2bn. At a glance, the profit numbers are also considerably below consensus expectations.
Growth has somewhat leveled off in Q2 16
03 Aug 16
Revenue growth moderated from +2.9% (to €9.85bn) in Q1 to +1.6% (to €10.2bn) in Q2. EBIT growth also moderated from +6.4% (to €1.04bn) to +5.6% to €1.25bn) whereas net profit growth accelerated from +12% (to €734m) to +14% (to €905m). While the group’s H1 revenue and net profit numbers are somewhat lower than our projected €20.33bn and €1.68bn, the EBIT is slightly higher than our forecast of €2.23bn.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
13 Feb 17
Surface Transforms* (SCE): H1 results confirm operational progress (CORP) | Premaitha Health* (NIPT): European diagnostics partnership (CORP) | Lok'nStore* (LOK): Filling existing stores, developing new ones (CORP) | Victoria* (VCP): Entry into the European flooring market (CORP) | eg solutions* (EGS): Exceptional H2 performance (CORP)
Share & share alike
14 Feb 17
The rally in the last fortnight, highlighted in the table, reflects a continued flow of positive updates and economic news. The FTSE 250, Small cap and Fledgling indices have reached record highs. We are in the lull ahead of results for those companies with a December year end, a welter of economic data regarding the UK economy, the State of the Union address in the US on 28 February and the UK Budget on Wednesday 8 March. We will learn at that stage the latest forecasts from the Office of Budget Responsibility. As highlighted previously, the reaction to corporate updates will continue to set the tone.