Continental's rubber division sees earnings rise 35%

Hanover, Germany – Continental AG’s Rubber Technologies Group – consisting of Tires and ContiTech – has reported strong growth in both sales and earnings (EBITDA) for the year 2021.

Overall, the segment posted a 34.7% year-on-year increase in earnings to €3.35 billion on 12.6% higher in sales at €17.6 billion, Conti reported 9 March.

Tires division, which will report as a separate group sector as of 2022, posted a 35% increase in earnings to €2.52 billion on overall sales of €11.8 billion, up 17% compared to last year.

EBIT margin grew by more than one percentage point to 14.6% for the division.

Continental’s industrial arm ContiTech also saw earnings increase 32% to €833 million as sales rose 7.5% to just under €6 billion. The division’s EBIT margin was flat at 7.7%.

On the 2022 outlook, Continental said that the ongoing conflict between Ukraine and Russia will likely impact its procurement and logistics costs.

In addition, the group has temporarily suspended production of tires at its manufacturing plant in Kaluga, western Russia.

Not including the risks posed by the war, Continental said it expected the Tires business unit to report sales of between around €13.3 billion and €13.8 billion in 2022, with an adjusted EBIT margin ranging between 13.5-14.5%.

For the ContiTech group sector, Continental projects sales of between €6.0 billion and €6.3 billion with an adjusted EBIT margin ranging between 7.0-8.0%.