Continental AG Net Profit Rose 30% In Q1

BERLIN May 5, 2003; Dow Jones reported that Continental AG Monday reported higher than expected first-quarter net profit, boosted by robust earnings at its Automotive Systems division.

The positive first-quarter earnings prompted the German tire and auto parts maker to raise its earnings expectations for 2003.

The Hannover-based company now expects 2003 operating profit to be "above" 2002's level.

It had previously said it expected 2003 operating profit to be flat with last year, when the company posted EUR694.3 million in earnings before interest, taxes and amortization (EBITA).

Continental - the world's fourth largest tire maker - posted a net profit of EUR87 million, up 30% from last year's EUR67 million. The company beat analysts' expectations of EUR76 million.

EBITA climbed 24% to EUR183 million from EUR148 million, thanks almost exclusively to the company's Automotive Systems division, which makes electronics and braking systems for cars.

Continental Automotive Systems posted an EBITA of EUR82 million, up from EUR50 million a year ago.

A slumping truck tire division, where EBITA fell to EUR11 million from EUR17 million, was offset by stronger profits at Continental's passenger car tire division, where EBITA rose to EUR57 million from EUR48 million.

Rubber and plastics division ContiTech saw EBITA rise to EUR41 million from EUR37 million.

Sales for the group rose 3.2% to EUR2.82 billion. The rise was damped by negative foreign exchange development. Adjusted for currency effect, the increase would have been 9.7%, the company said.

Company Web site: http://www.conti-online.com