Continental performance ‘entirely attributable to tyre operations’

Continental AG’s adjusted EBIT is reportedly 15 per cent (100 million euros) above estimates produced by Deutsche Bank. With net debt below 6.5 billion euros, impressed analysts commented that “these better results are entirely attributable to the tyre operations.” The tyre division contributes 28 per cent of the group’s sales and 42 per cent of adjusted EBIT, which reported a higher result despite the significant raw materials headwind.

Considering the results in a recent investor’s note, the Deutsche Bank analysts surmised that the performance is “a strong positive signal for 2011.” Looking forward, they predicted that the Automotive Systems division should benefit from a strong +9 per cent top line growth in 2011 with a “nice 25 per cent operational gearing.”

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