BERLIN, May 7 (Reuters) - German automotive supplier Continental raised its sales guidance for 2015 on strengthening auto demand in core European markets and foreign-exchange rate effects.
Hanover-based Continental expects sales to increase to “more than 39 billion euros” ($44.30 billion) compared with a previous estimate of about 38.5 billion, the company said.
“We are growing faster than the markets,” Chief Executive Elmar Degenhart said. “We expect this positive development to continue.”
Positive effects from foreign exchange developments could add 1 billion euros to sales this year, the CEO said on March 5.
The auto parts and tyre maker expects to “comfortably” achieve an adjusted operating margin of more than 10.5 percent this year, after 11.3 percent in 2014.
Free cash flow may reach “at least 1.5 billion euros” this year, finance chief Wolfgang Schaefer said, backing Continental’s plans for further acquisitions. ($1 = 0.8804 euros) (Reporting by Andreas Cremer; Editing by Edward Taylor)