HANOVER, Germany (Oct. 31, 2002) – Despite continuing losses by Continental Tire North America Inc. (CTNA), Continental A.G. reported improved operating and net earnings for the nine months ended Sept. 30.
For fiscal 2002, Continental anticipates a slight increase in sales, and based on the nine-month results, expects full-year earnings will be considerably above the 2000 level.
Conti did not elaborate on its losses in North America, other than to say the “unsatisfactory” tire business earnings North America will force the company to amortize CTNA's remaining goodwill of $47 million. It will be shown as expenditure in the fourth quarter operating earnings of both the passenger and commercial tire divisions, Conti said.
Operating earnings for the nine months jumped 77 percent to $536.7 million, while net profit was up 49 percent to $213 million after accounting for one-time restructuring charges.
Sales in the January-September period rose 3 percent over the 2001 period to $8.3 billion, although nearly all the gain was due to the first-time inclusion of sales from the automotive systems supplier Conti Temic.
The passenger tires division reported a 5.2-percent drop in sales to $2.71 billion, although unit sales were on par with 2001, Conti said. Sales in the third quarter fell 15 percent.
Despite the sales drop, the division boosted operating earnings by more than 70 percent to $155.8 million.
In commercial vehicle tires, Conti reported a slight drop in sales, to $960 million, despite improved sales in North America. The division moved back into the black, reporting an operating profit of $80.3 million for the nine months.