A booming winter tire business and higher prices are driving profits at the tire manufacturer Continental up more strongly than expected. Conti announced on Thursday that negative influences from lower volumes, exchange rate effects and customs charges were almost completely compensated for by a better price structure. Lower fixed costs also contribute to the better result. According to preliminary figures, the group’s adjusted profit margin is around 11.4 percent, while analysts surveyed by the company expected an average of 9.5 percent. At 5 billion euros, group sales were above the consensus of analysts’ estimates of 4.9 billion.
Things are going better in the tire business: here the adjusted profit margin of 14.3 percent will be around 1.3 percentage points higher than the market forecast. The division has long been the company’s source of income. The savings program is making itself felt in the ContiTech division, which is up for sale and bundles rubber products for industrial applications. At 6.6 percent, the margin is two percentage points higher than what analysts calculated. Just two weeks ago, Continental expressed more caution to analysts and agreed to lower margins.
On the way to becoming a pure tire manufacturer
The Hanover-based company listed its car business on the Frankfurt Stock Exchange in September under the name Aumovio. In addition, the hose lines and storage elements business was sold. ContiTech is to be sold next year. Continental will thus become a pure tire manufacturer again.
The French rival Michelin However, it had recently lowered its outlook for the full year, citing weaker business in North America. This will not be offset by higher sales in other regions. The US President’s tariffs also weighed heavily Donald Trump (79) on the profit margin.