Conti expects €2000 m in sales from OE and replacement business

Hanover, Germany -- Continental AG expects this year to achieve sales of €2000 million across its original equipment and replacement business for commercial vehicles.

Hans-Joachim Nikolin, Continental director responsible for the commercial vehicle tyres division, said the German tyre maker and automotive supplier was counting on strong growth during the next year.

“We do feel that, basically, the positive trend is continuing in the replacement business in Europe and North America as well as in the original equipment market, where we have made our way up to second place in Europe. All in all, we have increased global sales in the first seven months of this year by 3 percent,” Nikolin said.

He said Conti's plants in Slovakia and Malaysia have been expanded and production has started at a new plant Brazil.

"We are currently at the limits of our production capacity. We still have to wait and see, however, if the growth in global sales next year turns out as high as forecast by experts. And in a market where this is considerable pressure on prices, we will not take on any orders that would result in a loss for us."

Nikolin said business in the commercial vehicle tyre division is being impacted by the situation on the raw material market.

"In the first six months, we had to deal with cost increases of €45 million. We could offset these increases only in part with market price rises, whereby we did manage to improve our price position compared to the competition somewhat."

The company also expects strong growth at its ContiTech division, in particular air springs, hoses and engine suspension systems.

In October, Conti will start supplying 180 000 axle air suspension systems to DAF Trucks of the Netherlands.