Conti returns to black in 2002

HANOVER, Germany (April 8)—Continental A.G. expects earnings in fiscal 2003 to be on par with 2002 despite an economy that management describes as unpredictable and uncertain. Continental reported $624.1 million in operating earnings last year—a record figure despite a background of uncertainty about the economic situation in the automotive business. On a net basis, Continental turned a loss in 2001 into earnings of $213.2 million last year, while sales rose slightly to $10.8 billion. The company also reduced its indebtedness by more than $660 million, moving the firm closer toward its declared goal of returning to a gearing ratio—the relationship between shareholders' equity and debt—of 100 percent.