Continental Profit Figures Continue To Improve
Continental Shares Recommended As A Buy [4/2000]With an increase in sales of 35% to 9.13 bn Euros and an EBIT of 511 million Euros, the group has produced excellent results, with all parts of the group in the black.The passenger car tyre segment turnover was 2.
547 bn Euros; an increase of 6.6% over the previous year. The increase came mainly from the successful winter tyre segment, where Continental’s European sales were 13.
5 m units (1998 12.1 m). Unit sales of high performance tyres rose from 15.
8 m units in 1998 to 17.1 m units. The commercial tyre segment grew by 15.
8%, but the results were not as good as in 1998. The group managed to sell more units due to the acquisition of Continental General in South Africa and the joint venture with Matador. Continental General improved sales figures by 21.
5% for a turnover of 1.494 bn Euros. This was mainly because of the acquisition of the Mexican Euzkadi Group.
Without Euzkadi, Continental General’s increase would have been 2%. ContiTech achieved a turnover of 1.716 bn Euros and Continental Teves sales totalled 2.
544 bn Euros. Analysts recommended Continental shares as a ‘buy’ or even a ‘strong buy’..