Continental has unveiled first-half net income attributable to shareholders of the parent down 9.6% to EUR1.5bn (US$1.8bn) although sales rose 10% to EUR22bn.

“Our business with technologies for assisted and automated as well as with connected and efficient driving once again grew faster than the global market for passenger cars and light commercial vehicles,” said Continental chairman, Elmar Degenhart.

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“Sales growth in this area came to 10%. For this reason, we are raising our forecast for the corporation’s sales by EUR500m to more than EUR44bn.

Order intake for the Automotive Group totalled more than EUR19.5bn after the first six months.

“Our Tyre and ContiTech divisions also increased their sales by more than 9% altogether, including the contribution of the Hornschuch Group, which has been consolidated in the ContiTech division since March,” added Degenhart.

“With regard to earnings, the headwind in both divisions increased as expected as a result of sharp increases in raw material costs, which had a negative impact of EUR300m on the Rubber Group’s earnings in the first half of the year.”

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However, Degenhart expects price increases, mainly for natural and synthetic rubber, to decline again during the second half of the year.

Overall, the supplier anticipates a total negative impact of around EUR450m as at the end of the year. This is EUR50m less than the amount forecast at the beginning of the year.

“We are reiterating our earnings outlook and are pleased to be able to increase our sales forecast thanks to the growth momentum in the automotive business,” added Degenhart.

“We are confident the Rubber Group’s contribution to earnings in the second half of the year will be higher than in the previous year again.”

“Economic and political uncertainties are notably influencing market activities. Over the past few years we have further improved our agility and flexibility – and we are now benefiting from this.”