The slump in worldwide vehicle production “left scars on the performance of Continental”, the supplier said, announcing first quarter results.
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Consolidated sales for the first three months of 2009 fell 35.2% to EUR4,302.0m or 33% when adjusted for consolidation and exchange rate effects.
Continental said Q1 auto production in Europe and North America plunged 45%, and was again significantly below the volume for the previous quarter; production in Q4 2008 had already declined 28%.
The decline in its Rubber Group sales was much less severe owing to a larger percentage of its business coming from the aftermarket.
EBIT before adjustments was down year on year by EUR628.5m to -EUR46.6m. Consolidated EBIT fell EUR621.7m to -EUR165.0m. Net income was down to -EUR267.3m versus EUR166.8m in 2008.
“We acted resolutely in putting the brakes on spending but were unable to compensate for these enormous tremors in the market. However, we did succeed in keeping to the covenants agreed with our lenders”, said Continental’s executive chairman Karl-Thomas Neumann on Wednesday.
“The business environment will remain very difficult in the second quarter as well. So, compliance with the agreed key financial figures will still pose a major challenge.”
