Hannover, Germany – Continental Corp.’s Rubber Technologies Group, which includes its tire and ContiTech businesses, has seen its first quarter results decline significantly due to Covid-19 pandemic and slow demand.
The segment reported a 17.5% drop in earnings (EBITDA) to €651 million, on 9% lower sales at €3.9 billion, Continental announced 7 May.
Sales in the tire division fell 12.2% to just under €2.5 billion as volume fell 11.7% across all product areas. Adjusted EBIT fell 36.6% to €264 million due to lower volumes, underutilisation and ramp-down costs.
Industrial products unit ContiTech reported 8.1% lower sales at €1.52 billion, as OE business declined. Adjusted EBIT remained flat €117 million, as volume declines were compensated by margin-enhancement measures.
Continental said its China replacement tire volumes had fully recovered, while European activities are ‘picking up’ – following Covid-19 shutdown measures,
“Almost all [tire] plants restarted and are incrementally ramping up,” Conti reported in its financial presentation. In the Americas, it added, production is resuming in-line with local regulations.