HANOVER, Germany—One-time restructuring-related costs of $55 million ate into Continental A.G.'s earnings last year, leaving the company's operating and net profits below the fiscal 1999 performance.
Continental's sales grew 10.8 percent in 2000, to $9.34 billion, largely due to the growth of its automotive systems group.
Operating profits fell 15.5 percent to $398.2 million, while the net result was down 12.8 percent to $189.3 million.
The restructuring costs related primarily to the closing of a Uniroyal passenger tire plant in Newbridge, Scotland, Continental said. Adding to the bottom line problems were rising raw materials costs and a "very unsatisfactory" year by the company's controlled distribution chains in Europe.
Continental Tire North America increased sales by 2.4 percent—when adjusted for currency fluctuations—to $1.63 billion, Continental said. Each of the company's tire operations—passenger car and commercial vehicle tires in Europe, and Conti North America—recorded "pleasing growth" in unit sales.
The ContiTech non-tire rubber products division—the bulk of which is for sale—reported 4.2-percent growth to $1.65 billion.