ContiTech nears 60% earnings-growth in first half

Hanover, Germany – Continental has reported a 56.8% year-on-year increase in earnings (EBITDA), to €346.0 million, at its industrial rubber products unit ContiTech on first half sales up 9.1% to €3,472.7 million.

The results included a particularly strong second quarter: ContiTech posting EBITDA up 128% year-on-year to €174.0 million, on sales 8.0% higher at €1,741.9 million.

ContiTech's improved sales and earnings were linked to “inflation-related price adjustments and positive developments in a number of industrial areas."

“The industrial and replacement business developed positively, particularly in the area of conveyor belts and air spring systems, as well as industrial hoses,” added Continental

For fiscal 2023, parent group Continental expects ContiTech to achieve sales of between around €6.8 billion and €7.2 billion and an adjusted EBIT margin of around 6-7%.

This includes an expected negative impact from higher costs for material, wages and energy of around €200 million – pared down from a previous full-year forecast of €300 million.

Meanwhile, ContiTech is expected to benefit from a strategic realignment launched in May, to “enhance impact and efficiency, improve customer and market proximity and further expand its industrial business.”