HANOVER, Germany (July 29, 2011)—Continental A.G. is raising its earnings and sales outlook for fiscal 2011 after reporting double-digit earnings and revenue growth in the first half.
For the six months ended June 30, Conti reported pre-tax operating earnings of $1.86 billion, 26.7-percent better than a year ago. Sales jumped 17.6 percent to $2.13 billion, yielding an earnings/sales ratio of 8.6 percent.
Conti's Rubber Group reported 21-percent higher sales of $8.28 billion and pre-tax operating income of $1.14 billion, an improvement of 15.3 percent despite additional raw material expenses of $760 million during the period.
The Passenger/Light Truck Tire Business Staff Reported 17.5 percent higher sales of $4.66 billion and 56 percent improved operating income. The Commercial Vehicle Tires unit sales surged 36.5 percent to $1.23 billion as operating was up 54 percent.
For the year, Conti is raising its sales forecast 3.5 percent to $42 billion and expects an adjusted pre-tax operating income ratio of about 10 percent, up slightly over the 2010 figure, according to Continental Chairman Elmar Degenhart.
Conti said it expects additional costs related to raw materials for the year of more than $1.2 billion despite an easing in natural rubber prices because synthetic rubber prices are on the rise.