Analysts support Continental AG reform programme
Google, share profile, 02/09/20Financial analysts are reacting positively to the far-reaching restructuring measures announced by Continental AG yesterday that could cost up to 22 per cent of the 59,000 jobs in Germany alone.
Hannover-based Continental AG is a leading automotive supplier and – according to the company – is “the choice of leading car manufacturers, offering award-winning tyres that deliver responsive braking in all weather conditions.”
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Continental to expand restructuring programme to save 1 billion euros by 2023
Continental AGContinental is expanding the restructuring programme it initiated in 2019. The company is adding further measures to cut costs and increase efficiency to its Transformation 2019-2029 programme. The tyre manufacturer wants to achieve gross annual savings of more than 1 billion euros by 2023. This is significantly more than previous targets – in fact more than doubling the initially quoted figure. In total it expects the changes to affect more than 30,000 jobs worldwide. Its workers in Conti’s domestic market in Germany will be the largest part, with 13,000 affected jobs. A further major proportion will be in countries with high labour costs. Conti says these jobs will be modified, relocated, or made redundant. Conti says the programme aims to ensure its viability and strengthen global competitiveness in the long term.
BMZ and Continental pioneer digital tracing in natural rubber sector
GIZ; Canopy Indonesia | GIZ; Thomas HeinenIn what is purportedly an industry first, the German Federal Ministry of Economic Cooperation and Development (BMZ) and Continental are digitally tracing the rubber supply chain from cultivation in Indonesia and further processing through to tyre production.
Revisiting the past for a better future – Continental looks at Nazi era activities
Tyrepress/Stephen GoodchildConfronting one’s past can be a taxing experience, all the more so when this past includes one of history’s darkest hours. But this is exactly what tyre maker and automotive systems company Continental is doing in the run-up to its 150th anniversary – it is looking back more than three-quarters of a century to examine the firm’s role within the Nazi system and in Hitler’s war. Continental’s review of its involvement with the National Socialist government in Germany is being supported by the findings of an independent academic study, which was presented this morning.
Conti rated as ‘buy’ for ‘best cost base’ in the tyre business
Following comparably strong second-quarter 2020 results, some financial analysts have confirmed their “buy” rating for Continental AG shares. The reason? Ongoing cost-cutting plans as well as “deep restructuring measures”. Writing in an investor’s note published on 7 August, Jefferies equity research suggested Conti’s planned spin-off of its Vitesco powertrain operation plays a key role in this strategy:
Shifts in leading tyre manufacturer rankings, 2015-2019
TyrepressOver the last five years of data collection for the Tyres & Accessories’ ranking of the leading tyre manufacturers, a few trends can be observed – see accompanying graphs for more details. Firstly, it is easy to see that there are a few separate groupings of rival companies within the top ten. In our first chart, we can see that Continental has continued to progress in narrowing the tyre sales gap with Goodyear, partially because Goodyear has yet to regain the level of sales achieved in 2015, despite improved results on its half-decade low in 2017. Tyrepress noted in 2018 that based on tyre volumes, Conti looked likely to overtake Goodyear in light vehicle (passenger car and light truck) tyre volumes, showing how it has gained ground on the previous ‘Big Three’. Regardless of their order, it has been appropriate to talk of a global Big Four tyre manufacturers for a few years.
Künz Freerider fitted with Continental CraneMaster tyres
KünzKünz, an original equipment manufacturer of machinery including the rubber tyred gantry cranes (RTG) used in ports, is fitting Continental’s CraneMaster tyres to its new Freerider RTG.
Conti: Extreme E the biggest challenge tyres have faced in motorsport
ContinentalContinental is a founding partner and, from 2021, the premium sponsor of the Extreme E series. In this role, Conti will fit all race vehicles with tyres for the very challenging action. Indeed, according to the tyre and automotive supplier, Extreme E is the biggest challenge tyres have faced in motorsport. With this in mind, Nico Meier, product designer at Continental, talks about the challenges Extreme E tyres are exposed to in this unprecedented series, the importance of the tyre sidewall in general, and the sidewall design of the Extreme E tyre in particular.
Continental adds 10 sizes to its CombineMaster tyre range
ContinentalHaving made its CombineMaster tyre available in a VF version, Continental has added 10 new sizes to extend the range. The first VF CombineMaster tyre in size 500/85R24 became available in July. Both versions of the CombineMaster feature the patented N.flex and d.fine lug technology for “flexibility with low vibration on the carcass and high resistance to wear and tear”.
Continental’s tyres and rubber business profitable in Q2, despite corona
Marcus Prell, Continental AGContinental has reported second quarter 2020 consolidated group sales of 6.620 billion euros. This equates to -39.8 per cent drop year-on-year. Pre-tax profits (EBIT) came in at -9.6 per cent of sales (-636 million euros). However, sales in the Rubber Technologies division, which includes tyres, were 2.962 billion euros and the adjusted EBIT margin was 1.2 per cent (around 36 million euros). Thus, Continental’s tyre business has managed to remain profitable despite the obvious pressures of the coronavirus context.
Conti Hybrid HS3+ truck tyre offers regional and long-haul performance
ContinentalContinental Tyres has unveiled a new commercial vehicle steer tyre, designed for high mileage and even wear during both regional and long-haul use – the Conti Hybrid HS3+. The Conti Hybrid HS3+ will be available in the UK from August 2020.
Continental launches Conti EcoRegional truck tyre in Germany
ContinentalContinental AG has launched the Conti EcoRegional truck tyre range in Germany. According to the company, the new line-up “enables fleet operators to use their vehicles efficiently in regional traffic”. Reduced fuel consumption and increased mileage are said to be benefits. However, Tyres & Accessories understands that the EcoRegional range is not due to be launched in the UK until at least mid-2021.
Conti service to agri, online logistics ‘least affected’ by pandemic
ContinentalOver the past 12 months, Continental upgraded its agricultural tyre range with very high flexion (VF) tyres and other technological improvements, such as the single filament bead core on its CombineMaster. These improvements have made the manufacturer’s agri range more versatile, safer on the road, and more efficiencient in the field; VF tyres help to reduce soil compaction, which helps to promote increased yields. Conti re-entered the high-value agricultural tyre market in 2017 with the radial Tractor70 and Tractor85 ranges, with portfolio expansions following in the years since. This year has yielded many significant challenges for the tyre sector – but agricultural tyres have provided a much less gloomy segment outlook than others. Tyrepress asked Ivonne Bierwirth, global head of marketing Commercial Specialty Tyres, about the Continental business unit’s response to the Covid-19 pandemic, and how it has affected both its agricultural tyre activities and those of other commercial specialist tyre segments.
Pirelli, Hankook continue close rivalry in list of Leading Tyre Manufacturers
Tyrepress has published its 2020 ranking of the world’s top tyre manufacturers. Our ranking lists the top 20 tyre makers ordered by turnover from tyres in the previous calendar year. For example, Continental turned over nearly 45 billion euros in 2019, but 26.4 per cent of this was from its tyre divisions, making it the fourth largest tyre manufacturer in the world with 11.7 billion euros. The ranking presents a baseline for discussing the relative positions of the largest global players in tyre production. In 2019, we noted that Bridgestone had opened up a gap at the top of our ranking, around 2.65 billion euros ahead of second-placed Michelin in tyre turnover. This year, the French giant has reduced this gap to just over half a billion euros, reflecting its most recent acquisitions.
Two new TPMS tools also launched by Conti in the US
ContinentalFollowing the launch of its diagnostic system in late June, at the start of July, across the Atlantic Continental introduced two new Tyre Pressure Monitoring System (TPMS) tools designed to help shops optimize their investment in TPMS and tyre service. With the Autodiagnos TPMS D and SE Tools, professional technicians can handle all of the TPMS and tyre service requirements of their customers.
