ERJ staff report (DS)
Hanover, Germany -- After the first three months of 2008, Continental AG, said it is on course to achieve its targets for the year. "Despite the in part unsatisfactory trends on the tyre markets, we have clearly exceeded our expectations for the corporation on the whole," said Continental Executive Board chairman Manfred Wennemer in Hanover.
The company reported higher sales in two divisions: passenger car and light truck and in the ContiTech division. However sales in commercial vehicle tyres declined. Also, EBIT in the CV tyre unit declined sharply.
In passenger car tyres, sales improved to Euro 1203 million, from 1148 million in the first quarter. EBIT declined slightly, to 11.9 percent, from 13.7 percent. In the Contitech unit, sales improves slightly to Euro 798 million from Euro 781 million, while margins (EBIT) improved to 12.7 percent compared with 11.9 percent a years ago. In truck tyres, however, sales fell to 328.3 million from 344.5 million while EBIT declined to 3.8 percent, from 8.2 percent a year earlier. .
Conti said the decline in the tyre divisions had been almost exclusively due to increases in raw material prices. The company paid Euro 38 millino more this quarter than a year ago. "Without this effect, EBIT for the two divisions would have been at the same level as the previous year. It will take some time before the price increases implemented will have an effect on earnings." said Wennemer.
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Press release from Continental