Continental AG Ups Profitability in 2Q 2018
Continental AG posted net income of 822.1 million euros on net sales of 11.3 billion euros for the second quarter of fiscal 2018 ended June 30. That compares to income of 745.4 million euros on sales of 11 billion euros for the same period last year.
Based on the exchange rate on June 30, 2018, Continental recored net income of $962.4 million on net sales of $13.1 billion for 2Q 2018. Its income-to-sales ratio was 7.2%, up from 6.7% a year ago.
Continental's Tire Division accounted for 2.8 billion euros in sales (more than $3.2 billion), or nearly 25% of the parent company's total.
Sales growth was up in particular in the Powertrain Division in the second quarter. "Our future alignment is paving the way for Powertrain as well as the other divisions to continue to outpace our relevant markets in the future as well, as part of our values alliance for top value creation," said CEO Dr. Elmar Degenharthe, making reference to the recently announced realignment of the company.
Degenhart was also pleased with the quarterly results of the Tire Division, which had been impacted by exchange-rate effects in the first three months. Its adjusted EBIT rose from 15.2% in the first quarter to 17.8% in the second quarter.
"Our tire business was back up again in the second quarter, maintaining its profitable position on the global market," he said.
For the first six months of 2018, Continental recorded net income of more than 1.5 billion euros ($1.8 billion) on net sales of nearly 22.4 billion euros ($26.2 billion). That compares to income of nearly 1.5 billion euros on sales of 22 billion euros for the first half of 2017.
Tire sales in North America for the first six months surpassed 1.3 billion euros ($1.6 billion).
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