Automotive component and tyre supplier Continental has reconfirmed its outlook for 2006, and reported strong sales gains in the first nine months.
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Earnings before interest and tax (EBIT) in the third quarter were EUR410.3m, which puts it on a par with the same period of 2005, when Continental recorded its best ever quarterly result.
This was despite the high cost of raw materials, which reached a temporary peak in the most recent quarter, and the production cutbacks at key customers in the US.
In a statement, chairman Manfred Wennemer said full year sales and EBIT for 2006 would exceed 2005 levels.
Consolidated sales for the first nine months of 2006 rose by 6.9% compared with the same period of the previous year to EUR10,945.3m.
EBIT in the first nine months fell by 1.8% to EUR1,116.1m, and the return on sales fell to 10.2% (previous year: 11.1%). The decline was attributed mainly to restructuring costs, but Continental also said that increased raw material prices reduced EBIT in the first nine months by approximately EUR232m compared with the first nine months of 2005.
The automotive systems division increased its sales in the first nine months of 2006 to EUR4,401.3m, up 12.3%.
The passenger and light truck tyres division increased its sales in the first nine months to EUR3,392.8m, up 5.5%, while sales at the commercial vehicle tyres division were up 7.8% to EUR1,087.5m.
