Conti profits against the trend

In the midst of the automotive industry's crisis, the supplier Continental surprises with a significant increase in profit. Despite a slightly declining revenue, profits rose in the third quarter to 486 million euros, which is almost 63 percent higher than a year ago. The company was able to make noticeable gains both in auto supply, characterized by industry weakness, and in the tire division, which benefited from a well-started winter tire business. This was also thanks to price increases that Conti was able to enforce against automakers.

"We finished the third quarter with a good result," said Chief Financial Officer Olaf Schick. However, overall revenue fell by four percent to 9.83 billion euros compared to the same period last year. For the full year, management expects between 39.5 billion and 42 billion euros, 500 million euros less than previously expected.

Price Increases and Job Cuts Help Auto Supply Division

The recently struggling auto supply division benefited from higher prices. "We were able to successfully conclude 90 percent of the price negotiations planned for this year," said Chief Financial Officer Olaf Schick in conversation with dpa and dpa-AFX. It was primarily about offsetting inflation. Whether this also applies to the important Conti customer VW, Schick left open. VW recently intensified its austerity measures and also plans to cut costs in procurement.

In addition, Conti's cost reductions through job cuts in the auto supply sector took effect. This year, savings of 100 million euros have been achieved, said Schick. By the end of the year, it should be around 200 million euros. Of the 7,150 positions that are to be cut worldwide in the division, more than 4,500 have already been eliminated, a large portion of them in Germany.