ERJ staff report (DS)
Hannover, germany -- Continental AG reported financial results for the 12 months ended December 2009 showing significantly improved financial position. The company said the rubber group made a significant contribution to stabilising the corporation's overall financial position by posting margins of 12.9 percent.
Conti reduced its net indebtedness by apÂproximately €1.6 billion to just under €8.9 billion under extremely difficult conditions. Corproate sales for the 12 months decreased 17.1 percent to €20.096 billion as result of economic crisis. The company made a profit for the year, reporting adjusted EBIT of €1166 million.
Continental Executive Board chairman Dr. Elmar Degenhart emphasised the Rubber Group's stabilising contribution to Continental: â€œDespite sharp declines in sales, the Rubber Group succeeded in generating an EBIT of euro 656 million in crisis year 2009. The adjusted EBIT of more than euro1 billion was an even better performance than in 2008. With sales of around euro8 billion, this translates to a margin of 12.9%. This is a remarkable achievement for all three divisions, boosted by the positive developments in raw material costs.â€
The group's passener car unit reported remarkable results, with a profit (EBIT) of euro 536.4 million on sales of euro 4696 million. When the adjusted EIT is taken into account, the unit reported a margin of 16.6 percent over the year.
Although the truck tyre unit reported less impressive margins, the performance in 2009 was spectacular, bearing in mind the market conditions. Conti's CV unit reported a small loss (EBIT) of euro 50 million, but this reversed to a profit of euro 20.5 million afer adjustments, on sales of euro 1066 million.
ContiTech performed well, reporting adjusted EBIT of euro 242 millino on sales of euro 2406 million. IN each case the adjustments are before amortization of intangibles from PPA, consolidation changes and special effects.
The group said in a statement, "in 2010, we expect the global output of cars and light commercial vehicles to increase by around 7 percent as compared with 2009, and the passenger and light truck tyre replacement marÂkets to recover by 2% to 4% in the regions of Europe and North America. It is still difficult to determine sales opportunities in the truck tyre replacement market, but many indicators here also suggest a recovery, albeit from a very low level."
It forecast that adjusted EBIT for the Rubber Group in 2010 should remain around the same high level as 2009. One of our major challenges here will be raw material prices, which have again increased considerably since November 2009.
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Press release from source