ERJ staff report (DS)
Hanover, Germany -- Sales rose at Continental AG's rubber group, while profit remained the same, leading to a small decline in margins. Alan Hippe, head of the unit said higher raw materials prices will add around Euro 270 million to the units costs for the full 12-month period.
Sales for the nine months to September 2008 hit Euro 7183 million, compared with Euro 6918 million a year earlier. operating profit (EBITDA) hit Euro1103 million, slightly down on the figure of Euro 1175 million for the first nine months of 2007. The increased raw material costs more than accounted for the decline in profitability of the unit.
Summing up, Hippe said, "in the Rubber Group, we have very firm footing. Nonetheless, we will look into further cost cutting measures and scrutinize all of our investments. It is evident that this newly formed corporate group with its self contained posiÂtion, supported primarily by its business with the end customer, is well equipped for the diffiÂcult challenges ahead and will create value in the long term." he did not refer to the possible sale of this activity.
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Press release from Continental