HANOVER, Germany (Nov. 3, 2010)—Continental A.G. is raising its earnings outlook for fiscal 2010 after posting a third quarter gain in pre-tax operating of nearly 80 percent.
For the quarter ended Sept. 30, Continental posted earnings before interest, taxes and amortization of $1.1 billion on a 21-percent rise in sales to $10.2 billion. Net income of nearly $19 million was in contrast to a billion-dollar-plus loss a year ago.
For the year, Conti is raising its pre-tax earnings ratio projection to about 9 percent from a range of 8 to 8.5 percent.
Conti's Rubber Group posted solid gains in third quarter pre-tax operating earnings on 21-percent higher sales in the quarter despite record burdens from raw materials. The passenger tire/light truck tire division reported operating income of $266 million on 17.6-percent higher sales of $2.05 billion, while the commercial Tire Business Staff Reported earnings of $63.4 million on 36-percent higher sales of $550 million.
In the P/LT division, year-on-year sales volumes in all regions and business units saw strong double-digit percentage growth in the first nine months of 2010, with the most significant increase being reported by the OE business unit.