Hanover, Germany – Continental AG’s Rubber Technologies group has posted strong first quarter results, helped by a significant recovery in China.
The division posted a 33% year-on-year rise in earnings (EBITDA) to €868.3 million, on 6.6% higher sales of €4.2 billion, Continental announced 6 May. Adjusted EBIT margin was up at 14.5% compared to 9.6% last year.
The Tires business saw sales increase 15.8% to €2.7 billion as volume rose 9%.
Conti linked the unit sales increase to a demand recovery in the Chinese and North American replacement markets as well as the truck tire segment.
Segment’s earnings were up 38% at €651 million, helped by the significant volume recovery and strong price/mix which Conti said 'more than offset the 5.4% currency headwind.'
In the ContiTech industrial components segment, the recovery in global vehicle production, particularly in China, helped improve earnings despite flat sales of €1.5 billion.
Segment EBITDA rose 21% to €217 million, led by strong OE recovery in China and Europe, as well as restructuring and capacity adjustment.
“From an operational perspective, we have made a good start to the fiscal year,” said CEO Nikolai Setzer.
The development of the business in China, he noted, was particularly positive compared with the last year, following the Covid outbreak.
“The tire business and the ContiTech business area stood out in particular,” he concluded.