Conti margins continue to rise in first half

ERJ staff report (DS)

Hannover, Germany -- In the first six months, Continental's Rubber Group generated sales of €4.8 billion and reported EBIT of €690.7 million (more than doubled from €338.3 million a year earlier). The margin amounted to 14.4 percent, compared with 9.1 percent the year before.

In the Passenger and Light Truck tyres division, yearon-

year sales volumes in all regions and business units

saw strong double-digit percentage growth in the first

six months of 2010, with the most significant increase

being reported by the Original Equipment business

unit.

In the Replacement Business, growth was highest in

The Americas and Europe business units. The revival

of the markets was reflected in the sales figures for all

units.

In the Replacement Business, growth was highest in

The Americas and Europe business units. The revival

of the markets was reflected in the sales figures for all

units.

Sales of the Commercial Vehicle tyres division rose by

32.0% to €630.6 million in the first six months of 2010

compared with the same period of 2009 (PY: €477.8

million). Before changes in the scope of consolidation

and exchange rate effects, sales were up by 24.6%.

The Commercial Vehicle tyres division's adjusted EBIT

rose in the first six months of 2010 compared with the

same period of 2009 by €37.4 million, or 283.3%, to

€24.2 million (PY: -€13.2 million), equivalent to 3.9%

(PY: -2.8%) of adjusted sales.

Following a very weak 2009 characterised by plummeting

demand, the first half of 2010 saw a substantial

revival of the markets, causing sales figures to be

higher than those for the same period last year, but

still below the comparative values for 2008. All business

units outperformed the previous year by double

digit percentages.

Sales of the ContiTech division rose year-on-year by

27.7% to €1,477.7 million in the first six months of

2010 (PY: €1,157.0 million). Before changes in the

scope of consolidation and exchange rate effects,

sales were up by 26.1%. This increase occurred in all

business units and resulted primarily from the recovery

of the auto markets, but also from the division's nonautomotive

business. Automotive original equipment

sales rose some 47%, automotive replacement sales

roughly 19%, and non-automotive business sales by

approximately 10%.

The closure and transfer of Western European locations

of the ContiTech division's Fluid Technology

business unit led to restructuring expenses of €25.6

million in the first half of 2009.

The antitrust proceedings initiated in 2007 against

Dunlop Oil & Marine Ltd., UK, a subsidiary of Conti-

Tech AG, in the area of offshore hoses, resulted in

further expenses of €1.2 million.

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Financial report from Continental