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FRANKFURT, July 31 (Reuters) - German tyre and car parts maker Continental AG said on Thursday its core profits jumped 15 percent in the first half and would rise to at least 700 million euros ($798 million) in the full year.
The world's fourth-largest tyre maker said earnings before interest, tax and amortisation (EBITA) in the six months to the end of June jumped to 399 million euros, above the average forecast of 374 million in a Reuters poll.
"We have lifted our expectations for 2003 and expect that we will post an operating profit of more than 700 million euros," Chief Executive Manfred Wennemer said in a statement.
The company, which said previously it expected higher sales and earnings this year, posted EBITA of 694 million in 2002.
While profits at many of its customers have fallen, Continental has largely managed to escape the malaise in the auto industry due to a restructuring of its tyre business and a focus on high-margin electronics, which are less susceptible to pricing pressures from carmakers.
The first-half results imply an EBITA of 216 million euros in the second quarter, according to Reuters calculations, up from 199 million in the same period a year ago and above a consensus estimate of 188 million.
Continental stock, which has outperformed the DJ European autos index by 30 percent since the start of the year, ticked up on the news, trading 2.4 percent higher at 20.51 euros at 0810 GMT while the European index was 0.2 percent firmer.
Europe's biggest tyre maker Michelin posted a slide in first-half net profit on Tuesday due to restructuring costs, although its operating profit beat forecasts due to slightly stronger demand and higher prices.
Michelin gave no firm forecast for the year, but predicted an unchanged tyre market with a risk of decline while raw materials prices would remain high.