HANOVER, Germany-Continental A.G. anticipates a ``perceptible increase'' in earnings for fiscal 1995, based on successful cost containment measures and increased sales.
A lively winter tire business could push earnings beyond expectations as Conti's latest winter tire generation scored high marks in most of the important winter tire comparison tests.
For the nine-month period that ended Sept. 30, Conti reported continued growth in earnings over last year, saying they were ``perceptibly above budget'' without divulging the actual figure.
For fiscal 1995, management expects earnings to reach 2.5 percent of sales, up measurably from 0.7 percent last year.
Nine-month sales rose 2.9 percent over 1994 to $5.24 billion, but would have been considerably higher except for currency effects, the firm said.
Continental General Tire Inc. increased sales 10.1 percent to $1.11 billion for the period when calculated in dollars.
But when translated into deutschmarks, the U.S. subsidiary showed a decline of 4 percent.
In Europe, the passenger car tire business unit improved sales 3.2 percent, truck tire sales rose 10 percent and ContiTech was up 14.2 percent.
Separately, ContiTech Profile GmbH has notified workers at its Vahrenwald plant near Hanover that up to 90 jobs at the 500-employee plant may be eliminated in the coming year.
The loss of a contract to supply Volkswagen A.G. extruded rain gutters for the next generation Golf prompted the news.
The Continental subsidiary told workers it would have to reduce employment if it can't find a replacement for the lost VW business. ContiTech management said it would attempt to preserve as many jobs as possible, either through part-time jobs, a reduction in the workweek to 35 hours, or offering jobs in other Conti factories.
ContiTech managers were quoted in the local media as saying a competitor had underbid it by 20 percent for the business.