HANOVER, Germany—Continental A.G.'s Rubber Group, buoyed by strong tire business results, reported slightly higher operating income for the quarter ended March 31 on 3.8 percent higher sales.
The tire business, and in particular the commercial-vehicle tires business, contributed at a rate higher than corporate growth with sales revenue rising 7.4 percent over the 2018 first quarter to $3.22 billion.
The tire business also reported a gain in adjusted pre-tax operating income, up 4.2 percent to $473 million, or 15.1 percent of sales.
Conti reported replacement sales of passenger and light truck tires in the quarter were on par with 2018 but OE sales lagged the 2018 performance.
Overall, Conti reported a 17.1 percent drop in adjusted operating income, to $1 billion on marginally higher sales of $13.7 billion.
"Thanks to our strong market position, we have kept our sales stable in a clearly sluggish market environment," Continental CEO Elmar Degenhart said. "Our stricter cost discipline contributed to our solid results."