FRANKFURT (Bloomberg) -- Continental AG won't need to sell shares again before 2012 as it seeks to return its debt to investment grade status, and said it may pay a dividend for 2011 as profit improves.
“We are not considering at all raising new capital next year,” Chief Financial Officer Wolfgang Schaefer said in an interview. “We expect to reach investment grade status in 2012 and are therefore convinced that the current amount of equity capital is the right one.”
Financing of 8.2 billion euros ($10.8 billion) is secured until 2012 and there are no plans “in the short term” to resume talks with banks on rescheduling debt, Schaefer said. Continental will probably resume dividend payments for next year if its business continues to develop favorably, Schaefer said.
Continental posted first-quarter net income of 227.7 million euros, its first quarterly profit since 2008, as car demand rebounded and the manufacturer cut costs, the company said today. Sales jumped 39 percent to 6 billion euros.
The profit helps Continental reduce its debt after a 2007 takeover of Siemens AG's VDO unit. Continental last year cut jobs, reduced working hours for 22,000 employees, slashed capital spending and delayed development projects to conserve cash.