(Adds CEO comment on 2004, share price, background)
HANOVER, Germany, Jan 14 (Reuters) - German tyre and car parts maker Continental AG said its operating profit in 2003 may have exceeded 800 million euros ($1.02 billion), beating a target that it raised twice last year.
"There's a chance that there will be an eight at the front," Chief Executive Manfred Wennemer told reporters late on Tuesday, referring to earnings before interest, tax and amortisation (EBITA). His comments were embargoed for release on Wednesday.
Wennemer also said he expected Continental, which posted a 694 million euro operating profit in 2002, to lift earnings again this year.
"We expect we'll carry the upswing from last year over into this year and be able to reach a better result than in 2003," he said.
Continental shares were up 2.1 percent by 0941 GMT at 31.45 euros, compared to a 0.9 percent rise on the DJ European autos index .
The company initially forecast an operating profit of 700 million euros for 2003, but raised it to 750 million in October after cost cuts drove its third quarter earnings sharply higher.
It raised the forecast again to "well over" 750 million in December as its electronics systems continued to sell well.
Although car demand on both sides of the Atlantic remains sluggish with scant hope of a sharp upturn in the immediate future, Continental has been cashing in on manufacturers' desire to cram their vehicles with ever more sophisticated extras.
The company supplies industry names including Volkswagen , Mercedes and BMW with cruise control and anti-lock braking systems. Its lucrative electronics business drove profits for much of last year.
It has also been profiting from a revamp of its tyre business, where it has been shutting factories and investing in lower-cost sites in eastern Europe over the past three years.