ContiTech Air Spring Systems, a business unit of Continental AG’s ContiTech group, announced a “Letter of Intent” for founding a joint venture company with South Korean company Dae Won Kang to build up a plant for producing complete air spring systems. Dae Won Kang’s market share in this field in Korea is nearly 100 per cent.
Leading companies in the field of car components are to build up a new e-business solution for dealers and independent workshops. Like Bosch, Delphi, Mannesmann, VDO Sachs Tenneco and some others, Continental wants to use the new platform (for the Teves brand ATE and the ContiTech division), too.
The Benecke-Kaliko Group is the second-largest part of ContiTech. Continental has decided to increase its shareholding in the company from 50.1% to 99%, buying from DG Bank. Bamberger Kaliko will be separated from the group by a management-buyout.
The German group aims to achieve 10 bn Euro in sales this year. After having presented the half year figures for 2000 this is still likely, but they cannot improve the Earnings previously predicted. While Teves and ContiTech are in EBIT better than last year, the truck tyre division could improve the EBIT by five million to 33 million Euro. The p.c-tyre division is 24 million Euro in EBIT below the first half of 1999 despite an increase in sales of 4%. The situation with General Tire is poor. The company’s sales climbed by 23% (in dollars only by 8%) but the EBIT is 20 million Euro below the comparable time last year. General Tire will have difficulties avoiding red figures this year.
The ContiTech group, part of Continental AG, will cooperate on certain projects with Behr GmbH of Stuttgart, which specialises in air conditioning equipment and in engine cooling. As part of the cooperation Continental will take from Behr a 51 p.c. holding in the Kühner company (making hoses, principally for original equipment in Oppenheim). The company will be integrated into ContiTech Fluid, giving Continental the industrial leadership.
The new Managing Director of ContiTech Vibration Control is Heinz-Gerhard Wente (49). Wente succeeds Dr. Volker Härtel, who has assumed new functions in Strategic Technology within the Continental group. The new Managing Director of ContiTech Power Transmission Systems is Konrad Müller (48). Also a member of the board of this division is Hans-Jürgen Duensing, formerly of ContiTech Conveyor Belt Systems.
The ContiTech division of Hanover-based Continental AG experienced the most successful business year of its history in 1999, according to the company. ”The year 1999 marks a big step forward – in results, globalisation and concentration on core businesses”, was the way the year was summed up at a press conference by Manfred Wennemer, board member of Continental AG with responsibility for the ContiTech division and chairman of ContiTech Holding GmbH. In 1999 ContiTech increased its turnover to 1.72 billion Euro (previous year: 1.70 billion Euro), a plus of 0.7 p.c. This would have been about 2.5 p.c. but for changes in the contributing units,some of which were sold. Turnover per employee amounted to 112,000 Euro, approximately four per cent higher than the 107,000 Euro of 1998. In non-automotive sections the general economic situation led to some decline, but business with Europe’s car makers was approximately four per cent above the previous year’s level. The 1999 ContiTech turnover was made up about 64 p.c. in the automotive sector and 36 p.c. outside it. Operating profit (EBIT) also improved. The strong growth can be attributed, among other things, to a significant reduction in the extraordinary items and reserves for restructuring, which had depressed the 1998 result. On the contrary, the 1999 year saw one-off profits, especially from sales of individual segments. Wennemer emphasised that these positive effects on the results were caused by ContiTech’s restructuring measures. Read more in NEUE REIFENZEITUNG 5/2000.
After procuring 51 percent of Kühner (Oppenheim) in order to strengthen its market position, ContiTech now intends to acquire a further 35 percent of the company, which produces hoses for air conditioning equipment. The deal is planned to become effective 1st May.
After last year’s success, Continental’s business unit ContiTech has again been awarded “Supplier Of The Year” by the American General Motors Corporation. ContiTech Vibration Control won the prize for supplying damping elements for the engines of Opel’s Astra, Omega and Vectra.
Continental increased its turnover in the first quarter of this year by around 10.7 p.c. compared with the first three months of the previous year to 2.426 billion Euro. The EBIT comes to 135 million Euro, 65 million Euro coming from the tyre business. ContiTech contributed 46 million Euro and the balance comes from the Teves business. Despite the increased turnover in the tyre business from 1.1 billion Euro up to 1.228 billion Euro, tyres contributed 14 million Euro less to the EBIT, which is a consequence of the ongoing decline in prices.
ContiTech Fluid – part of ContiTech Holding, a business unit of Continental AG – announced a 50:50 joint venture in China and expansion of the production bases at Wackersdorf and Salzgitter, plus an extension of its Berlin centre of competence.
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