Conti's nine-month figures higher than 2008

ERJ staff report (DS)

Hanover, Germany -- Continental Group will achieve sales of more than euro 25 billion in fiscal 2010. At the same time, after three quarters the international automotive supplier is increasing its target margin for the full fiscal year from 8 - 8.5 percent to approximately 9 percent. Continental posted sales of euro 19.1 billion and an adjusted* EBIT of euro 1.79 billion after three quarters, thus exceeding the pre-crisis level of the first three quarters of 2008. At 9.4 percent, the adjusted EBIT margin after nine months also exceeded the comparable 2008 level.

The Rubber Group also used the economic recovery, reaching sales of euro 7,380.8 million (PY: euro 5,828.4 million). Despite record burdens from raw materials, the overall adjusted results after nine months have already exceeded the level that was achieved in fiscal 2009.

“That is a great achievement, and is very deserving of respect,” said Wolfgang Schäfer, CFO of Continental AG. “The impact from the increase in raw material costs will however exceed euro 450 million for the Rubber Group for the entire year 2010. In the remaining months of this year, it will be possible to only partially offset this impact with mix improvements, increases in efficiency and the price increases that have already been announced.”

In the Passenger and Light Truck Tires division, year-on-year sales volumes in all regions and business units saw strong double-digit percentage growth in the first nine months of 2010, with the most significant increase being reported by the Original Equipment business unit.

Volume growth in the Replacement Business was

strong across all regions, with sales figures reflecting

the revival of the individual markets.

Sales of the Passenger and Light Truck Tires division

rose by 26.2 percent to €4,236.0 million in the first nine

months of 2010 compared with the same period of

2009 (PY: euro 3,355.9 million). Before changes in the

scope of consolidation and exchange rate effects,

sales were up by 20.4 percent.

In the Passenger and Light Truck Tires division, there

were restructuring-related expenses and severance

payments totaling euro 16.2 million in the first nine months

of 2010, euro 9.2 million of which was attributable to the

closure of tyre production in Clairoix, France, and euro 3.3

million to the closure of the compounding and rubberisation

activities in Traiskirchen, Austria.

Sales of the Commercial Vehicle Tires division rose by

33.5 percent to euro 1,023.5 million in the first nine months of

2010 compared with the same period of 2009 (PY:

euro 766.5 million). Before changes in the scope of consolidation

and exchange rate effects, sales were up by

25.4 percent.

Following a very weak 2009 characterised by plummeting

demand, the first nine months of 2010 saw a

substantial revival of the markets, causing sales figures

to be higher than those for the same period last year,

but still below the comparative values for 2008. All

business units outperformed the previous year by

double-digit percentages.

Following a very weak 2009 characterised by plummeting

demand, the first nine months of 2010 saw a

substantial revival of the markets, causing sales figures

to be higher than those for the same period last year,

but still below the comparative values for 2008. All

business units outperformed the previous year by

double-digit percentages.

The closure of the Conti Machinery location in Puchov,

Slovakia, led to restructuring expenses of euro 8.6 million.

Sales of the ContiTech division rose by 27.7 percent to

euro 2,261.4 million in the first nine months of 2010 compared

with the same period of 2009 (PY: euro 1,771.1

million). Before changes in the scope of consolidation

and exchange rate effects, sales were up by 25.8 percent.

This increase occurred in all business units and resulted

primarily from the recovery of the vehicle markets,

but also from the division's non-automotive business.

Automotive original equipment sales rose some

41 percent, automotive replacement sales roughly 17 percent, and

non-automotive business sales by approximately 16 percent.

The antitrust proceedings initiated in 2007 against

Dunlop Oil & Marine Ltd., UK, a subsidiary of Conti-

Tech AG, in the area of offshore hoses, resulted in

further expenses of euro 3.1 million.

For the ContiTech division, the first consolidation of

the conveyor belt company Kolubara Univerzal D.O.O.,

Serbia, led to a gain of euro 0.7 million from the negative

balance.

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Press release from Continental