BERLIN (Reuters) -Germany auto components maker Continental predicted rising gross sales would increase margins this 12 months, because it strikes past provide chain disruption and Russian asset impairments that in 2022 contributed to a fall in internet revenue of practically half.

Saying outcomes on Wednesday, CEO Nikolai Setzer additionally stated the corporate was striving for “a managed withdrawal” from Russia after final 12 months’s efficiency was undermined by asset impairments of 87 million euros ($91.70 million), in addition to destructive particular results of round 1 billion euros and excessive rates of interest.

Continental’s share worth rose 6.1% in early commerce.

“2022 was notably difficult for us… The conflict towards Ukraine drove up the costs for uncooked supplies, semi-finished merchandise, vitality and logistics,” Setzer stated.

Continental suspended manufacturing at its Kaluga plant in Russia after Moscow started its invasion of Ukraine in February final 12 months. It additionally stopped imports and exports from the nation, however stated in April it had briefly resumed operations to guard native employees from prison costs, with out elaborating.

The corporate forecast a 5.5-6.5% margin for this 12 months on increased consolidated gross sales of 42-45 billion euros, up from 39.4 billion final 12 months. In January, it had reported preliminary outcomes, saying its 2022 margin was on the decrease finish of its outlook at 5%.

It incurred 3.3 billion euros in further prices in 2022 and anticipated an additional 1.7 billion this 12 months from the elevated value of supplies, vitality, logistics, wages and salaries.

Internet revenue fell to 67 million euros from 1.4 billion final 12 months.

The auto market globally noticed some restoration final 12 months from the influence of the pandemic and financial weak spot. World automobile manufacturing rose 7% and Continental’s order consumption from the automotive sector gained 26%.

On Wednesday the corporate predicted an increase in international auto manufacturing of two%-4% in 2023, in step with a forecast in January by Germany’s autos affiliation. Automotive manufacturing remains to be decrease than earlier than the pandemic.

($1 = 0.9488 euros)