Conti reports operating profit on 32% sales decline in first half

ERJ staff report (DS)

Hannover, Germany -- Based upon preliminary figures for the second quarter of 2009, Continental AG posted a clear profit with an adjusted EBIT of €283.0 million despite further market-driven declines in sales in comparison to the same period of 2008.

Dr. Karl-Thomas Neumann said on Monday in Hanover that Continental has had to reduce the number of employees worldwide by about 16,000 since the crisis began in September 2008.

Based on preliminary figures, consolidated sales for the first half of 2009 fell compared with the same period of the previous year to €9,063.2 million (H1 2008: €13,254.0 million). This decline was due to the market downturn resulting in part from the unexpected full stop in production at Chrysler in May and June. Sales in the second quarter of 2009 amounted to €4,761.2 million (Q2 2008: €6,614.6 million), thus exceeding sales in the first quarter of 2009 by roughly €460 million. Although consolidated EBIT fell in the first half of 2009 to -€126.2 million, (H1 2008: €912.4 million), EBIT in the second quarter totaled to €38.8 million despite the continuing slump in sales, exceeding first quarter EBIT by more than €200 million.

The Rubber Group, which is less susceptible to economic trends on the whole, is posting substantial profits, providing for reliable cash flow. At the same time, we have gained important business for the future in the Automotive Group,” Dr. Neumann explained. “In view of the upcoming financial liabilities that become due in August 2009 and August 2010, we feel that it is still vital for us to safeguard this strong formation with an appropriate financing situation in the medium and long term,” said Dr. Neumann.

The Continental Corporation's financial report for the first half-year will be released on July 30.

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