2008.03.27

Hanover, March 2008. The European tyre market for commercial vehicles developed extremely positively for Continental in the business year just ended. Original equipment business recorded a considerable rise on the fast-growing market. The market share rose again in replacement business. Business in the NAFTA countries and in Asia was completely different. The weak US economy caused a fall in turnover for commercial vehicle tyres while sales in Asia are still in the set-up and expansion phase. 

The area of industrial tyres secured its market leadership again in 2007 while also expanding global business activities.

Production costs have been reduced further due to a rise in plant productivity. However, this could only cover part of the material costs that rose constantly in 2007. 

“European truck tyre replacement business developed well in the last business year,” explains Herbert Mensching, Director Marketing and Sales Truck Tyre Replacement Business at Continental. “It will also stay this way with the continued positive market development for commercial vehicles.” He adds: “I was only concerned about the continued rising raw material prices that will definitely force us to raise prices again sooner or later.” Introducing the construction site tire in Spring 2007 created an increase in turnover of around 20% in this segment in 2007 according to his figures.

The start of 2008 was extremely positive for original equipment business while sluggishness has been reported for replacement business in the first three months of the current business year. However, the division presumes that the launch of the new trailer tyre will revive business considerably.

Figures – data – facts for 2007 business year

Due to the business development in the NAFTA states and the set-up work in Asia, the annual turnover was reduced by around 1% to €1.45m. (previous year €1.47m.). Excluding the consolidation and one-time effects, an EBIT reduction from €136m. to €124m. results.

The division increased global sales of truck tyres by more than 3% to well over 7 million units. The commercial vehicles division employs over 8,000 people worldwide including over 2,000 in Germany.

With targeted annual sales of more than €26.4 billion for 2008, the Continental Corporation is one of the top automotive suppliers worldwide. As a supplier of brake systems, systems and components for the powertrain and chassis, instrumentation, infotainment solutions, vehicle electronics, tyres and technical elastomers, the corporation contributes towards enhanced driving safety and protection of the global climate. Continental is also a competent partner in networked automobile communication. Today, the corporation employs approximately 150,000 people at nearly 200 locations in 36 countries.

The Tyres division is an official sponsor of the UEFA EURO 2008TM. Further information is available from www.ContiSoccerWorld.de, www.contifanworld.com and www.conti-online.com.