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With a sharp increase in the raw material costs, the Continental’s Tyre and ContiTech division earnings were down despite an increase in sales in the first half of 2017. Executive Board Chairman, Dr. Elmar Degenhart, while reporting the company’s first half and second quarter results said that despite an increase in sales till June 30th, these costs impacted the Continental Rubber Group’s earnings by some 300 million euros. Overall, Continental anticipates that raw material prices will have a negative impact of approx. 450 million euros for the entire year, about 50 million euros less than what was projected at the start of 2017.
But, the overall news was good for company’s automotive group. The sales rose up to 10.2 percent more than in the same period of 2016, which stood at 13.4 billion euros. Earnings before interest and tax stood at 1.1 billion euros thereby marking an increase of 14.6 percent. As commented by Degenhart – “Our business with innovative technologies for assisted and automated as well as with connected and efficient driving once again grew faster than the global market for passenger cars and light commercial vehicles”.
Outlining the uncertainties in the political and economic environment which influences the outcome, Degenhart is confident that the rubber group’s contribution to earnings in the second half of the year will be higher than the previous year. He also said that the group has improved the flexibility and agility over the past few years and is now gaining from this.
