Continental AG has reported a 30% increase in operating income to EUR1.5bn and a 9.8% increase in sales to EUR13.8bn (interim figures).
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“We have managed to continue our successful course by combining strengthened innovative power, a successful acquisition policy, sound growth and stringent cost control. We will continue to follow this strategy consistently in the years to come,” said the chairman of Continental’s executive board Manfred Wennemer.
Sales in its automotive system rose 4.5% to EUR5.2bn, a 3.7% increase after exchange rate adjustments. “Sales increases over last year are primarily due to higher volumes in ESC, brake boosters and brake calipers, as well as electronic control units for driving authorisation systems – particularly from the higher rate at which vehicles in the US are being equipped. The greatest sales growth was achieved in the businesss units electronic brake and safety systems,“ said Karl-Thomas Neumann, executive board member for the automotive systems division.
The division’s operating income (EBIT) rose 14.3% to EUR570.1 million.
The passenger and light truck tyres division increased sales 8.3% to EUR4.4bn. The operating result (EBIT) of the division surged by 57.5% to EUR669m. The division increased its unit sales by 3.9% to 106.2 million tyres.
The commercial vehicle tyres division showed a sales decline of 8.1% to €1.38bn. The division improved its operating result (EBIT) by 47.1% to EUR153m.
The ContiTech division increased sales 40.3% to EUR2.0bnbn (prior year: EUR2.063,4bn). Phoenix, acquired by Continental in 2004, contributed EUR985.3m to sales. The operating result (EBIT) of the ContiTech division rose 6.2% to EUR160m.
Continental is expecting further improvements this year. Wennemer said that “in 2006 the subject of acquisitions will continue to top our list. Furthermore, we will expend considerable energies to achieve our challenging growth targets without sacrificing our margins. We intend to actively manage containment of anticipated raw material price rises; this will also have to include price increases.”
