FRANKFURT -- German supplier Continental said it expected to comfortably reach its financial targets for 2017 after its underlying earnings rose about 10 percent in the first quarter.
"Continental made a very good start to the new fiscal year in a volatile environment," CEO Elmar Degenhart said in a statement on Friday, as the group published key quarterly figures ahead of its annual general meeting in Hanover, Germany.
Its adjusted operating profit (EBIT) rose about 10 percent to about 1.2 billion euros ($1.3 billion) in the three months through March.
Revenues were up almost 12 percent at 11 billion euros and the margin stood at 10.7 percent.
Continental, which makes driver-assistance technology, fuel-injection systems and vehicle tires, has said it aims to raise annual sales by more than 6 percent to over 43 billion euros this year, despite rising raw material price, with a margin on adjusted operating profit of more than 10.5 percent.
The group is bolstering its electronics expertise as carmakers including Volkswagen Group and Ford Motor raise spending on battery-powered and autonomous cars in response to tougher anti-pollution rules and the emergence of new rivals such as Google.
On Tuesday, Continental said it plans to invest an extra 300 million euros in electric drives by 2021 in a move that may generate an additional 2 billion euros in sales by 2025.
Continental is due to publish full first-quarter earnings on May 9.