Continental AG reports 7.6% group sales increase despite $231 million net loss
Continental AG announced group sales of $10 billion in 2001 compared to $9.3 billion last year.
Sales revenues in the tire segment rose by 2.2%. A "clear increase" at the company's passenger tire division in Europe compensated for a drop in sales at other divisions, including Continental Tire North America Inc.
Sales at Continental's Automotive Systems division increased 31.8%, while sales at the ContiTech Group division were slightly below the previous year’s level.
Continental reports that the results were "burdened with considerable one-off restructuring costs" of $419.4 million compared to only $55.4 million in 2000.
The result before interest and taxes comes to a $57.4 million loss, which includes restructuring expenses. In total, Continental reported a deficit $231.2 million, compared to a gain of $189.4 million the previous year.
"In anticipation of the new US GAAP accounting standards, under which annual amortization of goodwill is no longer required, we are already publishing the EBITA (EBIT before budgeted goodwill amortization)," says the company. "For 2001, EBITA comes to 33 million € ($29.6 million) in contrast to 533 million € ($492.4 million) in the previous year."
The Passenger Tires Division recorded sales of $2,550.3 million in 2001 compared to $2,438 million the previous year -- a 4.6% increase. The Commercial Vehicle Tires Division recorded sales of $794 million.
Continental Tire North America's sales of $1,562 million were 4.4% less than in 2000. The parent company said the decrease was "due to the downturn of business activity in the North American automotive industry."