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Conti Profit Climbs 31% on Record Sales
Continental AG posted net income of €483 million ($635 million) in the first three months of 2012 compared with €369 million ($485 million) in the same period of last year.
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Continental AG posted net income of €483 million ($635 million) in the first three months of 2012 compared with €369 million ($485 million) in the same period of last year. Revenue rose 13% to a record €8.3 billion ($10.9 billion).
Earnings before interest and taxes in the first quarter jumped 21% to a record €766 million ($1 billion). EBIT margin grew to 9.2% from 8.6% a year earlier. Adjusted EBIT margin, which excludes special items, increased to 10.6% from 10%.
Conti's automotive parts operations boosted adjusted EBIT 12% to €403 million ($530 million) on a 12% revenue increase to €5.1 billion ($6.7 billion).
The tire business hiked adjusted EBIT 24% to €494 million ($649 million) on a 15% sales gain to €3.3 billion ($4.3 billion). The company says price pressures on the unit will increase in coming months because of the oil price spike earlier this year.
For the full year, Conti aims to boost sales 5% to more than €32 billion ($42 billion) and achieve double-digit adjusted EBIT margins.
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