HANOVER, Germany—Additional revenue provided by several recently acquired companies led Continental A.G., as well as its U.S. subsidiary, Continental General Tire Inc., to higher sales and earnings for the first half of 1999. The Hanover-based tire maker said net income rose 20.8 percent to $132.9 million as sales increased 53.6 percent to $4.8 billion.
These results incorporate financial performances from three recent acquisitions and a new joint venture. They include: Conti's purchase last year of a 60-percent stake in Gentyre Industries Ltd. in South Africa, since renamed Continental Tyre South Africa (Pty.) Ltd.; the purchase of Mexico's Corporacion Industrial de Llantera S.A. de C.V., better known as Euzkadi; the acquisition of the brake and chassis operations of ITT Industries Inc. for $1.93 billion, which has been renamed Continental Teves; and a new truck tire venture with Matador A.S. in Slovakia.
Without their contributions, Conti's sales would have grown only 5 percent, the firm said.
In the U.S., sales for Continental General rose 13.3 percent to $743.9 million and earnings before taxes climbed 21.2 percent to $43.6 million. These totals include the results of Ezukadi in Mexico. Without them, sales would have decreased 2 percent, Conti said.
Both CGT divisions—passenger and commercial—did more business with the auto industry during the half. In replacement tires, shipments of passenger tires declined as a result of the 11-month-old strike at the company's Charlotte, N.C., tire plant, while those for commercial tires rose.
Conti said it expects full-year 1999 results to rise to $9.8 billion from $7.38 billion in 1998.