HANOVER, Germany—Sales for the Continental A.G. fell 3.4 percent to $10.5 billion from the first quarter of 2012, according to the financial report released by the company.
In addition, operating earnings decreased 5 percent to $979.4 million, due partly to high research and development expenses, according to the firm.
The adjusted earnings were slightly more than $1 billion, falling 10.4 percent compared with the first three months of 2012.
The Rubber Group generated sales of $4 billion, an increase of 15.4 percent. That compares with a 15.2 percent increase in 2012.
The company said global passenger car production is expected to stabilize.
Continental blamed a long winter in Northern Europe, as well as an early Easter holiday for negatively impacting the development of passenger cars and tires sales.
The international automotive supplier, tire manufacturer and industry partner invested $565 million in the first three months of 2013. Sixty percent of that was related to rubber, particularly involving expansions in North America, South America and Asia.
Continental also reported that it had nearly 173,000 employees at the end of the first quarter, an increase of 3,200 since the end of 2012.