Continental Confirms 2006 Earnings and Sales are Up
Continental will exceed the record sales and profit levels it achieved in 2005, according to executive board chairman Manfred Wennemer. At the interim results presentation, he stressed that the international automotive supplier had raised its adjusted EBIT by 10.1 per cent to 1.18 billion euros after nine months compared with the same period of 2005. “In our industry, it does not really make much sense to look at the quarterly figures. Nevertheless, the third quarter 2006 again shows that, with an adjusted EBIT of 410.3 million euros, we are nearly on par with the adjusted figures for the same period of 2005. In view of the costs for raw materials, which reached a temporary peak this quarter, and the production cutbacks of key customers in the US, we feel this is remarkable, since a year ago we achieved our best ever quarterly result.”
Consolidated sales for the first nine months of 2006 rose 6.9 per cent compared with the same period of the previous year to 10.945 billion (previous year: 10.24 billion).
The Passenger and Light Truck Tires division increased its sales in the first nine months of 2006 to 3.39 billion, up 5.5 per cent compared with the same period last year (3.21 billion). Before exchange rate effects, sales rose by 4.6 per cent. Sales to the NAFTA replacement market improved markedly, leading to an increased EBIT before one-time effects. One-time effects led to a 32.4 per cent decline in EBIT to 325 million (previous year: 480.8 million euros) and a return on sales of 9.6 per cent (previous year: 15.0%) for the division. Before these one-time effects, EBIT improved by EUR 8.8 million or 2.2 per cent. This was achieved despite price increases for raw materials.
The Commercial Vehicle Tires division reported sales in the first nine months of 2006 of 1.087 billion, an increase of 7.8 per cent compared with 2005. Before changes in the scope of consolidation and exchange rate effects, sales were up 9 per cent. The division reported a 23.8 per cent decline in EBIT to 86.6 million (previous year: 113.7 million euros) – mainly due to increases in raw material prices. Before changes in the scope of consolidation and one-time effects, EBIT fell by EUR 9.6 million or 12.4 per cent.