More on Continental AG’s 2005 Results - Tire Review Magazine

More on Continental AG’s 2005 Results

(Clacton, U.K./Tyres & Accessories) Continental AG’s consolidated sales rose by 9.8% to 13.82 billion euros (prior year: 12.59 billion) in 2005.

The company’s operating result (EBIT) increased at an even higher rate of 30.2% to 1.5 billion euros (prior year: 1.15 billion).

The return on sales amounted to 10.9% (prior year: 9.2%). “When adjusted for scope of consolidation and one-time effects, EBIT in 2005 rose by 165.1 million euros over the previous year,” explained Alan Hippe, executive board member responsible for finances.

The passenger and light truck tires division increased its sales by 8.3% to 4.44 billion (prior year: 4.1 billion). Operating result (EBIT) of the division surged by 57.5% to 669.0 million euros (prior year: 424.8 million). This implies a return on sales of 15.1% (prior year: 10.4%).

The division increased its unit sales by 3.9% to 106.2 million tyres. Operational sales were on a par with last year.

Business in the NAFTA region developed positively overall. “All told, in the fourth quarter of 2005 we still almost reached the operating break-even point we were aspiring to,“ said Hippe, who is also president and CEO of Continental Tire of North America. “We expect that during this year more progress will be achieved and we can stabilize this positive trend. More efficient cost structures will help, as will the new plant in Brazil, where production has started.”

Continental’s positive results come against a backdrop of a generally subdued global automobile market and considerably higher raw material prices. “We have managed to continue our successful course by combining strengthened innovative power, a successful acquisition policy, sound growth and stringent cost control. We will continue to follow this strategy consistently in the years to come,” said Manfred Wennemer, chairman of Continental’s executive board.

You May Also Like

Hunter’s new Hunter University is designed to train customers, techs and instructors

The online courses are generally presented in five-minute segments.


Hunter Engineering is introducing Hunter University, its new global learning platform designed for training for customers, technicians, technical school instructors, students and any other interested parties. The company said its platform collects all of Hunter’s learning content in a single place, offering dozens of free online courses worldwide, as well as registration for hands-on, in-person courses at training centers around the United States.

Sonic Tools USA offers tools to beat back the technician shortage

Andrew Coccari, VP of Sales and Marketing at Sonic Tools USA, delves into the causes of the technician shortage and offers some novel solutions to address the need for help around the country.

WT YT-Sonic-Tools-1400
Apollo Tyres expands Vredestein Pinza HT and Ultrac Vorti i sizes

Vredestein Pinza HT has been introduced for premium SUVs in India in 16- to 18-in. sizes, while the Ultrac Vorti i has been expanded for luxury SUVs by introducing it in 21- and 22-in. sizes.

Five tips for your next wheel bearing job

These practical tips are designed to save you time and frustration, ensuring a smooth, noise-free outcome for your customers.

tech iq
Apollo Tires US recalls certain Vredestein, Quatrac tires

Dealers will replace the tires free of charge.


Other Posts

Discount Tire, Major League Soccer (MLS) announce multiyear partnership

Discount Tire has also struck a partnership to be the official tire retailer of Inter Miami CF and is collaborating with Continental Tire.

Sally Thomas taps into her tenacity to build on the success of her family’s tire business

Today, Sally Thomas and her brother, Bryan, operate eight retail stores, two commercial locations, three wholesale distribution warehouses, a Mighty Auto Parts franchise, and an e-commerce business.

Net Driven acquires CarCareConnect

With this acquisition, CarCareConnect customers will gain access to Net Driven’s suite of digital storefront and digital marketing solutions.

Handshake agreement
Hankook Tire America recalls select Kinergy GT tires

Certain Kinergy GT tires, size 235/60R18H H436, are missing the missing the four-digit week and year code mark.