Conti’s rubber group earnings down on global market slump

Hanover, Germany – Continental Corp.’s Rubber Group has reported a 2.1% year-on-year decline in earnings (EBITDA) at €1.53 billion for the first half of 2019.

Segment sales rose 3.1% during the six months to end of June, at €8.8 billion, partially helped by currency impact and price/mix, Conti reported 6 Aug.

In the tire division, organic sales in the second quarter fell 1.9% year-on-year to €2.8 billion, due in part to 1.9% lower volumes.

Engineered goods unit ContiTech reported a 2.3% decline in organic sales at €1.677, as a result of “tepid” vehicle production.

“At present, our business is being influenced by the slowdown in global automotive production,” said Conti chief financial officer Wolfgang Schaefer commenting on the results.

For the second half of the year, he went on to say, Conti does not expect the headwind to ease.

“The company does not currently envisage a market upturn in the short to medium term,” he added.

Conti lowered its market expectations for the full year earlier in July.

The company now anticipates that, year-on-year, the production of passenger cars and light commercial vehicles would be down 2% in the US, 3% in Europe, and 10% in China.

Overall, the company is assuming that global vehicle production will fall by about 5% in 2019.