ContiTech achieves record sales performance

ERJ staff report (LMH)

Hanover, Germany -- ContiTech AG, one of Continental AG's five divisions, has reported its best ever performance in the company's history, with sales of Euro 3.6 billion in the 2011 fiscal year, an increase of 16 percent.

“We have thus once again broken the record for the best result in the company's history,” announced Heinz-Gerhard Wente, head of Continental's ContiTech division and chairman of the ContiTech AG board.

Earnings (EBIT) also improved, rising 13 percent from Euro 370 million to Euro 417 million. The return on sales reached 11.6 percent. EBIT adjusted for special effects increased by 12.4 percent from Euro 397 million to Euro 446 million, resulting in a return on sales based on this value of 12.5, ContiTech said.

The main sales market for ContiTech products remains Western Europe including Germany (62 percent). All business units worldwide saw significant growth.

Compared with the 2010 fiscal year the share of the industrial and automotive replacement business inched up over the course of last year from 46 percent to 47 percent. The automotive original equipment business reached 53 percent.

“We are continuing to pursue our growth targets in the industrial business, as we believe it comprises key markets for the immediate and more distant future,” said Wente.

ContiTech added that China remains a key market for the company. Nearly half of the total business in Asia is generated in this market, which has sales of Euro 220 million.

The strong sales also had a positive effect on the employee headcount. ContiTech hired around 1400 new staff at locations around the world; 430 of these new jobs were in Germany alone.

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Press release from ContiTech