Continental AG reported a successful year with an increase in net income, sales and earnings in its 2015 financial report.

“Continental is in great shape. With our proven business model, we generated free cash flow before acquisitions of 2.7 billion euros in 2015. We increased our equity to 13.2 billion euros, its highest level to date. This enables us to act tactically and powerfully in a challenging environment and to play a major role in shaping the digital future of mobility with our innovations,” said Elmar Degenhart, Continental executive board chairman.

Net income improved to 2.7 billion euros, while earnings before interest and taxes increased 23% to 4.1 billion euros. Conti’s sales increased by about 14% (more than 4.7 billion euros) from 34.5 billion euros to 39.2 billion euros. Continental also invested 2.2 billion euros in property, plant and equipment and software in 2015, and research and development expenses increased 14.6% year-over-year to more than 2.4 billion euros.

“Backed by a strong financial position, we are tackling the major challenges ahead with Continental’s typical agility,” Degenhart said.  “These challenges particularly include volatile markets, fluctuations in raw material prices and currency exchange rates. In fiscal 2016, we expect to generate a similarly high level of organic profitable growth of around 5%, as in the past year. We want to take advantage of the opportunities arising from new, digital mobility concepts in a systematic and focused manner this year. In doing so, we will concentrate on developing our successful business model intelligently and tapping new business areas and customers in an innovative way. The start we have made to this year in a difficult environment confirms our expectations for 2016.”

Conti’s outlook for 2016 is positive, expecting similar results to 2015. The company expects growth of 5% or approximately 41 billion euros, it said.