Continental AG expects N.A. 'turnaround'

April 1, 2005

"We should be achieving a turnaround in the fourth quarter of 2005 as planned," Martin deLouw, the head of Continental AG's Passenger and Light Truck Tires division, says in reference to Continental's North American business.

Despite "planned" sales volume declines in North America during 2004, Continental says "operational business" has improved in the United States, as well as the company's product mix and margins.

The Hanover, Germany-based tiremaker plans to increase production this year.

"Considering the current order trend, we expect our tire plants to run at full capacity again in 2005."

Earlier this week, Continental AG announced it had achieved record operating results of more than 1 billion euros last year.