Car-parts giant Continental raises 2015 forecast on lower raw material costs

Frankfurt

CONTINENTAL AG, Europe's second-biggest maker of car parts, raised its 2015 profitability goal as lower supply costs bolstered second-quarter earnings. The stock jumped the most in 91/2 months.

Earnings before interest and taxes, and adjusted for one-time gains or costs, will amount to 11 per cent of revenue instead of an earlier prediction of more than 10.5 per cent, Hanover, Germany-based Continental said on Tuesday in a statement.

Low prices for oil, rubber and other commodities have helped Continental cut spending. The euro's decline against the dollar this year boosted the value of revenue generated outside Europe. An earnings boost from raw-material cost reductions will amount to 200 million euros (S$302 million) in 2015 rather than an e…