Analysts: Conti Doing Extremely Well in Tyre Operations
Continental AG’s tyre operations are “doing extremely well,” according to financial analysts. Writing in an investor’s note, Deutsche Bank analysts reported that the tyre business' 11 per cent (combined truck and passenger) operating margin in the first half of 2009 outperformed its rivals.
“Even if the group enjoyed a small 45 million euro positive impact from raw material (compared with a small negative of 19 million euros at Pirelli and a bigger negative of 117 million euros at Michelin), they enjoyed a double digit operating profit margin despite a high 20 per cent volume decline,” the analysts wrote.
Looking forward, Deutsche Bank predicted that the tyre operations will benefit from a positive raw material effect of (200 million euros) and from a volume recovery.
The analysts pointed out that tyre operations produce 48 per cent of Continental AG’s group revenues.