Conti expects pretax profits to soar

ERJ staff report (R&PN)

Hanover, Germany -- Continental AG said it expects to report a fivefold jump in first-half pretax operating earnings to nearly $1 billion on the strength of 38-percent higher sales, according to preliminary, unaudited figures.

Based on the preliminary six-month results, Conti anticipates sales for the full year should exceed fiscal 2009 by about 15 percent with an adjusted earnings before interest and tax of 8 to 8.5 percent, or nearly three full percentage points up on 2009.

The firm cautioned, however, that earnings in the second half could be burdened by extra costs of as much as $205 million due to the rising costs of raw materials, primarily natural rubber

Conti will report its first-half financials on July 29.

From Rubber & Plastics News (A Crain publication)

Press release from Continental AG