German tyre maker Continental confirms outlook

German auto parts and tyre maker Continental on Tuesday confirmed its outlook for the year after a third quarter marked by a solid boost in sales but a sharp drop in underlying profit.
Between July and September, group net profit rose 14 percent to 295 million euros ($369 million) and its turnover increased nearly four percent to 8.7 billion euros, Continental reported.
But it said the weak performance of its powertrain division had weighed on underlying or operating profit during the same period.
Earnings before interest and taxes (EBIT) tumbled 28 percent to about 638 million euros, according to a calculation by AFP.
The Hanover-based company focused on nine-month earnings, in which turnover increased three percent to 25.6 billion euros and net profit jumped 14 percent to 1.8 billion euros.
"We are keeping our sights set firmly on our target for the adjusted EBIT margin, which we raised to around 11 percent after the first half of the year, and we even consider it realistic that we may slightly exceed this level at the end of the year," said chief executive Elmar Degenhart.
He said sales were expected to total about 34.5 billion euros this year, "despite the negative exchange rate effects of 650 million euros that we recorded in the first nine months".