Free cashflow, a key criterion for earnings quality, may increase to at least 2 billion euros (1.58 billion pounds) by the end of the year, from a previous target of at least 1.8 billion euros, Continental said on Wednesday.

Net debt fell to 3.08 billion euros after the first three months from 4.10 billion a year earlier, the Hanover-based group said.

Continental reported key quarterly earnings last Friday, predicting full-year profit to rise on an expected pick-up in the automotive sector after earnings in the January-March period rose on stronger demand for tyres and industrial parts.

(Reporting by Andreas Cremer; Editing by Victoria Bryan)