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While the Continental tyre has achieved some moderated sales growth in the 3rd quarter of 2016, the company has reported that “several isolated and unrelated circumstances” in its automated divisions had a “negative impact on earning”.
As commented by Dr. Elmar Degenhart, the chairman of Continental’s Executive Board that the sales growth in the automotive business gained momentum in the third quarter and with this organic growth of over 6 percent, they once again are in good position from where they can grow faster than the market with their solutions for safe, efficient and intelligent driving.
Although there has been growth in the sales to 3.8 percent year-on-year to Euro 10.0 billion, however warranty cases, pending antitrust proceedings and increased Research and Development expenses impacted them negatively of Euro 450 million on the automotive group’s earning. This impact has dragged overall EBIT down by 42.4 per cent to Euro 596.3 million, which further led to the drastically contracting of the margin to just 6 percent from the 10.8 percent. Moreover, their Net Income dropped by 40.5 percent to Euro 378.5 million.
