ERJ staff report (DS)
Hannover, Germany -- Continental AG has posted results for the three months to 31 March, 2010. The group's rubber division reported margins of 14 percent, on much stronger sales.
The unit reported sales up by 25 percent, at euro 2232 million (1784 million). Profits also increased sharply, with EBIT reaching euro 312.8 million, up from euro 113 million reported in the appalling first quarter of 2009.
The company warned of significant costs increases due to higher natural rubber prices.
The company's consumer tyres unit saw double-digit volume growth in all segments and all regions, resulting in sales up by 28.7 percent, to euro 1283 million. Profit (EBIT) more than doubled to Euro 220 million, giving an adjusted margin of 17.4 percent.
Recovery in the commercial tyre segment was less strong, due to slower recovery in the European region, sales still rose by 18 percent, to euro 281 million, up[ from euro 238 million for the three months. This performance more than reversed last year's losses, resulting in profits (EBIT) of euro 19.6 million, compared with a loss in the first three months of 2009 of Euro 13.7 million.
ContiTech reported even stronger recovery and effects of the cost-down programme of the last years. The non-tyre unit reported sales up by 23.5 percent, at euro 702.3 million, while profits (EBIT) more than doubled, to euro 92.2 million, giving a margin of 13.1 percent.
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Press release from Continental