Continental's first-half operating income increases, sales dip

HANOVER, Germany (July 31)—Continental A.G.'s operating income jumped 14.9 percent in the first half, prompting management to raise the full-year earnings outlook to $775 million and the debt gearing ratio to below 100 percent. Conti achieved improved earnings despite difficult conditions in the global automotive business, which accounts for about 60 percent of the firm's annual sales. Operating profits rose to $443 million while sales revenue was down slightly to $6.27 billion. Additionally, the firm said its passenger tire business unit increased operating earnings by nearly a third, to $132 million, despite continued losses in North America.