Hanover, Germany – ContiTech AG’s earnings (EBIT) dropped to €171 million in 2015 compared to €433 million the previous year with the return on sales dropping to 3.2 percent from last year’s 11 percent, the German company announced on 26 April.
The German rubber parts supplier posted the lower earnings figures alongside a 37-percent rise in 2015 sales to around €5.4 billion.
Explaining the numbers, ContiTech spokeswoman Antje Lewe said that EBIT was mainly affected by ‘purchasing price allocation’ (PPA) for the acquisition of US-based Veyance Technologies and one-off effects.
“In 2015, intangible assets that resulted from purchase price allocation within the Veyance acquisition were written down. Special effects also had a negative impact,” Lewe said in a written statement.
In the past year, she added, prices for raw materials, most recently for oil, plunged dramatically in a continuation of the 2014 trend. This, according to Lewe, particularly affected business in industrial hoses and conveyor belts in our oil & gas segment.
Once the EBIT is adjusted by these effects, ContiTech generated a total of €388 million - 7.2 percent of sales.
“When we consider the challenging situation, this is a very pleasing result,” she added.