UPDATE 1-Continental AG ups outlook on car market surge

* Continental AG sees greater top-line growth in 2010

* Implied Q2 sales of 6.5 bln eur, adj EBIT of 600 mln eur

* Shares up 2.1 percent to 42.90 euro by 1039 GMT

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FRANKFURT, July 2 (Reuters) - German automotive parts supplier Continental AG (CONG.DE) said on Friday it was raising its outlook for 2010 on the back of a surprisingly strong rebound in the global automotive industry.

Continental expects revenue to increase by about 15 percent this year and will earn before interest and taxes (EBIT) between 8.0 to 8.5 percent of sales on an adjusted basis in 2010 compared with just 5.8 percent last year.

Shares jumped on the news as Continental previously only forecast between 5-10 percent top-line growth along with a "significant" increase in adjusted EBIT.

Customers like Daimler (DAIGn.DE) have been caught off guard by the rebound in global car markets like the United States, and in particular the boom in demand coming from China.

Earlier on Friday, Daimler Chief Executive Dieter Zetsche said his car business might even enjoy a record June. [ID:nLDE661093]

For the first half, Continental reported its top-line increased 37 percent to about 12.5 billion euros ($15.30 billion).

Adjusted EBIT during the first half would nearly quintuple to at least amount to 1.2 billion euros versus the 249 million earned a year ago.

Backing out the figures from Continental's first-quarter results, they imply revenue of 6.5 billion euros and at least 600 million euros in adjusted EBIT for the second quarter.

"Based upon these preliminary results for the first half year 2010, we believe that an increase of approximately 15 percent in consolidated sales over last year's figure of close to 20 billion euros is realistic for 2010," Continental CEO Elmar Degenhart said in a statement.

The company, which is controlled by bearings maker Schaeffler, will publish full results on July 29.

(Reporting by Christiaan Hetzner)