Continental Tire North America announces first quarter drops
Continental Tire North America Inc. has released its first quarter results.
The Charlotte, N.C.-based subsidiary of Continental AG reported post-tax consolidated earnings of $38.77 million during the first three months of 2001. Its first quarter earnings last year totaled $55.26 million.
Continental AG's 2001 first quarter sales were $2.37 billion, a .6% drop from last year's first quarter figures.
"Earnings continue to suffer from downward pressure on tire prices and the increased cost of materials," say Continental officials.
"The difficult situation in the North American tire market, with fierce price gouging and a slump in vehicle sales, accompanied by drastic increases in energy and raw material prices and increased costs for production modifications, led to falling sales for Continental Tire North America and operative losses."