HANOVER, Germany—Continental A.G.'s Rubber Group recorded a 2.1 percent decline in pre-tax operating earnings (EBITDA) to $1.72 billion for the first half of 2019, despite a 3.1 percent increase in sales revenue.
Segment sales rose to $9.89 billion, partially helped by currency impact and price/mix, Conti reported. The operating ratio fell slightly, to 17.4 percent.
In the tire division, revenue grew 4.9 percent during the six months to $6.41 billion, while pre-tax operating income rose 1.4 percent to $1.35 billion, yielding an operating ratio of 21.1 percent.
As a corporation, Conti suffered a 21.1 percent drop in adjusted pre-tax operating income (EBIT) of $2.02 billion on 0.3 percent lower sales of $25.1 billion.
"At present, our business is being influenced by the slowdown in global automotive production," Chief Financial Officer Wolfgang Schaefer said, noting the company does not expect the headwind to ease in the second half."