According to first preliminary figures, unaudited sales for the first half of this year increased by about 38% to approximately €12.5 billion (PY: €9,063.2 million). On this basis, adjusted EBIT (EBIT before amortization of intangible assets from PPA, changes in the scope of consolidation and special effects) is expected to amount to at least €1.2 billion (PY: €248.8 million). In the first half of 2010, special effects resulted primarily from the closure of the truck tire production in Hanover/Stoecken which amounted to €35 million. In 2009, special effects in the first six months amounted to €146.9 million.
Based upon these preliminary results for the first half year 2010, the company believes that an increase of approximately 15% in consolidated sales to be realistic for 2010 (PY: €20,095.7 million). The adjusted EBIT margin for 2010 should be between 8.0% and 8.5% (PY: 5.8%). Based on current expectations, however, a burden of approximately €250 million is anticipated in the second half of 2010 alone resulting from the raw material costs which have been increasing since the beginning of the year (primarily natural rubber).
The Continental Corporation’s financial report for the first six months is expected to be published on July 29, 2010.