Conti's rubber group revenues fell by 22 percent in Q1

ERJ staff report (DS)

Hannover, Germany -- Sales at Continental's rubber group fell by 22 percent to euro 1784 million (2292 million) in the first three months of 2009. Despite the decline, the unit recorded positive earnings. EBIT stood at euro 113 million, down from euro 254.9 million a year earlier.

These results were significantly better than the results for the Automotive group, which saw sales fall by over 40 percent, resulting in a loss (EBIT) of euro 266 million compared with a profit of 212 million a year earlier.

In the tyre division, Conti said sales of consumer tyres fell by over 17 percent, to euro 997.1 million (euro 1202 million) in the quarter. The unit still made a profit, however, and contributed to free cash flow. EBIT for the unit stood at euro 92 million, down from euro 142 million a year previously. Capital expenditure fell slightly, to euro 55.8 million from euro 61.4 million.

In CV tyres, the results were less positive, with sales down by 27.5 percent to euro 238 million from euro328 million a year earlier. The unit switched back into loss, recording an EBIT of euro -13.7 million compared wih a profit a year ago of euro 12.2 million. Capital expenditure dropped to euro 11.1 million, compared with 19.6 million a year earlier.

In the Contitech division sales were down by 28.8 percent, to euro 568.7 million (euro 798.4 million), but the unit still managed a positive EBIT of euro 34.6 million, down from euro 100.4 million. Capital expenditure rose slightly, to euro 23.7 million, from euro 21 million.

“Based upon the latest information, we are expecting a clear revival in sales and operating results in the second quarter of 2009 compared to the very weak first quarter of this year. However, the plant closures announced for the Passenger and Light Truck Tires, Commercial Vehicle Tires as well as ContiTech divisions will result in restructuring expenses in the coming quarters. As a result of this and other factors, considerable deviations can thus still arise in comparison with last year's figures”, said Continental's Executive Board chairman, Dr. Karl-Thomas Neumann.

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Press release from Continental