Conti records strong growth in first nine months

Hannover, Germany - Sales and profits were up at Continental in the first nine months of 2006, while margins suffered a little due to intense pressure on raw materials costs.

"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," said Executive Board chairman Manfred Wennemer in Hanover this morning.

Consolidated sales for the first nine months of 2006 rose by 6.9 percent compared with the same period of the previous year to € 10 945 million (previous year: €10 241 million).

The passenger car tyre division also saw sales growth, reporting sales of €3393 million, compared with €3216 million in the first nine months of 2005. Pre-tax profit (EBIT) fell to €425 million from €481 million, and margins droped to 9.6 percent, from the 15 percent recorded a year earlier. Conti said this was a one-time effect due to plant closures and other announcements.

Conti's truck tyre unit was affected in the same way. The unit reported sales in the first nine months of 2006 of €1088 million, up 7.8 percent compared with the same period of 2005 (€1009 million). Before changes in the scope of consolidation and exchange rate effects,

sales were up 9.0 percent. The division reported a 24 percent decline in EBIT to €86.6 million compared with €113.7 million a year earlier. Conti said this was mainly due to increases in raw material prices. Before changes in the scope of consolidation and one-time effects, EBIT fell by €9.6 million or 12.4 percent.

At ContiTech, sales were level, but profit (EBIT) more than doubled to €248.4 million, compared with €122.1 million a year earlier. Margins also rose by 100 percent, to 11.5 percent in the ContiTech business.

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