Continental has raised its forecast for 2015 profitability on strong first half earnings results bolstered by lower raw material costs.

“We are aiming to achieve an adjusted EBIT margin of around 11% for the year as a whole, after previously having anticipated a margin of more than 10.5%. Based on the positive development in the first half of the year, we are also raising our forecast for free cash flow before acquisitions from at least EUR1.5bn to at least EUR1.8bn,” said the chairman of the Continental Executive Board, Dr. Elmar Degenhart.

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Continental said its sales rose by 15.8%, year on year, to EUR19.6bn in the first half of 2015. Net net income attributable to the shareholders of the parent grew by 11.1% to more than EUR1.4bn.

The company also said that its strong financial business means that it can finance acquisitions from within its own funds.

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