German automotive parts supplier Continental increased its first quarter net profit by almost 60 percent year-on-year to 382 million euros (about nine billion kroner). It predicted that global production of passenger cars and light commercial vehicles would rise two to four percent for the full year from last year’s 82.3 million, which should support its full-year profits.
Continuous improvement
“The company expects its earnings to continue to improve throughout the year, driven primarily by passenger and light commercial vehicle production growth, inflation-related selling price adjustments and cost discipline,” the company said in a press release today.
In this year’s first quarter, global production of passenger cars and light commercial vehicles increased about six percent year-over-year to 21.1 million, according to the company. However, it was down from the final quarter of last year, when it totaled 21.9 million vehicles.
The increase in production
In Europe, Continental said first-quarter car production was up 17 percent year-on-year to around 4.5 million vehicles, and in North America, it rose 10 percent to 3.9 million vehicles. In China, however, it fell eight percent to 5.7 million vehicles.
Continental bought the Slave tyre manufacturer Barum in 1993 and now has several production plants in the Czech Republic. In addition to tyres, the company also produces products such as brake boosters, brake hoses and onboard instruments and displays in the country.
Source Czech Press Office
