Conti continues extraordinary growth in Q3

ERJ staff report (DS)

Hanover, Germany -- Continental AG said it remains on target for strong sales growth in the full year. “We are still expecting sales to reach at least €29.5 billion. In addition, we still feel we can achieve an adjusted EBIT margin of some 10% for the full year 2011.” said Continental Executive Board Chairman Dr. Elmar Degenhart at a meeting in Hannover this morning (Thursday).

The Rubber Group boosted its sales in the first nine months of 2011 year-on-year by about €1.5 billion to approximately €8.9 billion. Despite raw material costs amounting to €765 million in the first three quarters, the adjusted EBIT rose roughly €113 million to nearly €1.2 billion. The adjusted EBIT margin was 13.5% after 14.7% for the same period of 2010.

Within the rubber group, nine-month sales in the passenger car unit amounted to euro 5036 million (previously euro 4236 million); ContiTech sales were euro 2597 million (previously euro 2261 million); CV tyre sales were euro 1284 million (previously euro 1023 million)

Earnings (EBITDA) in the different units were split as euro 973 million (previously euro 897 million) for a margin of 19.3 percent (previously 21.2 percent) (passenger cars); euro 392 million (previously euro 367 million) for a margin of 14.5 percent (previously 16.2 percent) (ContiTech) and euro 125 million (previously euro 92.3 million) for a margin of 9.3 percent (previously 9.0 percent) (commercial vehicle tyres).

Conti noted that it paid euro 31.1 million for the Modi Tyres Co Ltd in India. The company has assets worth euro 12.2 million, and euro 18.9 million was booked as goodwill. Modi's results were included in Conti's figures from 31 July 2011. It generated around euro 100 million in the previous year.

Conti also said that it sold its stake in the Matador-Omsk tyre-making joint venture in Omsk, Russia on 30 June 2011. It did not break out the price of the transaction, but included it in gains of euro 1.8 million, saying the deal had an insignificant impact on assets and financial position.

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Earnings statement from Conti