Mixed first half for Continental’s rubber units

Hanover, Germany – Continental’s Rubber Group achieved first-half sales of €8.6 billion, about level with a year ago, the group’s half-year results show.

The unit, which includes Continental’s Tire division and ContiTech, achieved organic growth of 3.6% over the first six months of this year, said a 2 Aug press statement.

The performance included a recovery at Tire division, which had been impacted by exchange-rate effects in the first three months.

“Our tire business was back up again in the second quarter, maintaining its profitable position on the global market,” commented Dr. Elmar Degenhart, CEO of Continental.

First-half sales in the Tire division fell 2.4% year-on-year to €5,437.1 million – though actually rose by a similar level before currency factors and changes to scope of consolidation. However, earnings (adjusted EBIT) dropped 11.8% to €897.5 million.

In April, Continental said it expected exchange rate and inventory-valuation effects to impact earnings by around €150 million in the first half of the year, with its tire business primarily affected.

At ContiTech, sales increased 3.9% year-on-year to €3,231.6 million, equating to a 5.9% increase before changes in the scope of consolidation and currency effects. Adjusted EBIT lifted 2.1% to €264.7 million for the first six months.

Continental went on to report the addition of around 8,000 new employees since the start of the year. About one-third of the additional staff was hired in the Rubber Group, primarily to support expanded production and distribution activities.