HANOVER, Germany (May 4, 2005) — Continental A.G. is projecting record sales and earnings for 2005 based on the positive results of the first quarter, which saw both profits and sales rise measurably.
Pre-tax operating earnings rose 9.5 percent to $388 million while sales—buoyed by the first-time inclusion of the Phoenix activities acquired last year—grew 8.9 percent to $4.27 billion. Net earnings jumped 24.8 percent to $219.2 million.
“Despite the rather weak economy in the automotive industry, we still have our sights firmly set on record targets for the year as a whole,” Manfred Wennemer, executive board chairman, said.
Among Conti's divisions: The passenger and light truck tires unit's sales rose 6.7 percent to $1.29 billion and the operating result was up 7.6 percent to $119.6 million; the commercial vehicle tires unit posted a 12.9-percent gain in operating profits, to $23 million on 9.6-percent better sales of $402.4 million; and the ContiTech businesses reported 43-percent higher sales of $929 million and 19.5-percent better operating profits of $76.5 million, with the Phoenix activities contributing $14.8 million in earnings and $312 million in sales.