Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Best Places to Work
    • Rubber Division IEC
    • War in Ukraine
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • ITEC
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • Airless Tires
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • Ask the Expert
    • Healthcare Elastomers Conference
    • Rubber In Automotive Conference
    • Women Breaking the Mold Networking Forum
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
March 09, 2018 01:00 AM

Conti CEO: Restructuring moves driven by 'automotive transformation'

European Rubber Journal
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Continental A.G.
    Continental CEO Elmar Degenhart (left) and CFO Wolfgang Schaefer recently shared results of the company's 2017 financial year.

    HANOVER, Germany—Continental A.G.'s moves to explore options for a major restructuring of the group are being driven by transformation within the automotive industry, CEO Elmar Degenhart said.

    Technology changes require flexibility and agility, and that was why the company wanted to gear itself toward rapid growth, Degenhart said in a 2017 annual results statement March 8.

    "We are currently assessing our options. A plan is yet to be finalized," Degenhart said in comments indicating that major changes do, indeed, lie ahead for the Hanover-based group.

    The CEO pointed to the DAX-listed group's adaptability, saying: "Continental has been undergoing a process of gradual transformation for nearly 150 years. In the past 20 years alone, Continental has transformed from a purely tire manufacturing business and industrial partner into a global technology company."

    In a separate document posted on Conti's website, the company outlined seven strategic dimensions it sees as keys to sustainability.

    1. Value creation — enhancing the value of the corporation on a long-term basis;
    2. Regional sales balance — globally balanced sales distribution;
    3. Top market position — be among the three leading suppliers in all relevant markets;
    4. In the market for the market — high degree of localization; Conti is represented in 56 countries with production sites in 35 of them;
    5. Balanced customer portfolio — balance between automotive and other industries;
    6. Technological balance — combination of established and pioneering technologies; and
    7. Great people culture — an environment where employees feel free to use their creative energies; develop a culture of trust throughout the organization.

    Regarding point 5, Conti  elaborated, saying it is pursuing three approaches in this regard:

    • investing in additional tire production capacity geared predominantly toward the end customer business;
    • strengthening the automotive end customer business through customer-specific solutions and products; and
    • increasing sales with industrial customers from sectors outside of the automotive industry both organically and through acquisitions.

    Degenhart's comments accompanied Continental's 2017 results announcement, showing year-on-year earnings (EBIT) up 11.4 percent at $5.7 billion on 8.5 percent higher sales at $54.1 billion.

    The German technology and automotive supplier said its Rubber Group registered 8.6 percent higher sales for the year at $21.5 billion. However, segment's earnings (EBITDA) at the Rubber Group, which comprises its tire division and ContiTech, fell 1.6 percent to $4.3 billion.

    Commenting on company results, Continental Chief Financial Officer Wolfgang Schaefer said exchange rate effects and higher costs of materials affected the margins in 2017. Assuming the current exchange rates represent the average for the current year, Conti expects negative exchange rate effects of more than $1.2 billion in 2018, Schaefer said.

    He also noted that the German corporation anticipates additional negative effects of $61.5 million from price increases for natural and synthetic rubber this year.

    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    EV owners: OE tires falling drastically short of treadwear expectations
    2
    Wacker gets bullish on China with $100 million investment
    3
    80 years later, PPG silicas still driving tire performance
    4
    Canada funding efforts to cut tire-wear particle pollution
    5
    Rubber futures close low as demand in China slows
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Best Places to Work
      • Rubber Division IEC
      • War in Ukraine
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • ITEC
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • Airless Tires
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • Healthcare Elastomers Conference
        • Rubber In Automotive Conference
        • Women Breaking the Mold Networking Forum
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
      • Ask the Expert
    • Advertise
    • DIGITAL EDITION