HANOVER, Germany (May 3) — Continental A.G.´s first quarter pre-tax operating income rose 24 percent and all of the firm´s operating divisions reported improved earnings over the 2006 period.
Conti´s earnings before tax and interest grew to $582.4 million on 9.8-percent higher sales of $5.29 billion. Net income was up 21.9 percent to $360.7 million.
Conti Chairman Manfred Wennemer said he expects the company will achieve its sales and earnings goal for the year, although raw material prices continue to be an uncertainty.
Conti´s passenger/light truck tire division improved operating earnings by 45.5 percent to $209.5 million as sales grew 7.7 percent to $1.53 billion on higher replacement market unit sales in Europe and the Americas.
The commercial vehicle tires unit increased earnings by 42.6 percent to $37.5 million, while sales dipped 0.5 percent to $459.3 million. Sales in Europe were up, but business in the Americas fell short of 2006, Conti said.