Consumables

A Successful Fiscal Year 2012: ContiTech Remains on Course for Growth

Friday 19. April 2013 - ContiTech ups sales by almost 4% - Internationalization moving ahead - Numerous investments strengthen position - Division focusing on products for sustainable machine and plant engineering applications at the Messe

Even in the currently difficult economic climate, ContiTech AG, one of five divisions of Continental AG, is remaining on course for success. The Hanover-based technology company generated sales of €3.7 billion in the past fiscal year, corresponding to an increase of 3.6%. At a press conference at Hannover Messe 2013, Heinz-Gerhard Wente, head of the Continental’s ContiTech division and chairman of the Executive Board of ContiTech AG, remarked: “Our strategy of penetrating growth markets early on, such as Asia, but also Brazil and Eastern Europe, has now made us less susceptible to the economic turbulence in Europe. But North America has also developed positively for us, and we aim to achieve further growth there.” The good business results also had a positive effect on employee headcount. ContiTech had 28,210 on its payroll at the end of the year, 960 more than the previous year.
The operating result (EBIT) improved significantly over 2011, from €417 million to €442 million, and yielded a return on sales of 11.9%. EBIT adjusted for special effects remained almost unchanged at €444 million (PY: €445 million). On this basis, the return on sales amounted to 12.1% (PY: 12.4%). “So ContiTech has again made a tidy contribution to Continental AG’s overall earnings,” said Wente.
Internationalization of business is progressing on schedule. Sales have developed particularly well in Asia and America. Asia now accounts for 16% of overall sales, up from 13%, while America makes up 17% of sales, up from 13%. Still, Western Europe remains the main sales market with ContiTech generating around 56% of its worldwide sales there.
Successful Expansion Course
Last year, ContiTech noticeably strengthened its position with numerous acquisitions and the construction of new plants. “All told, we invested €151 million last year – in other words, around €40 million more than in 2011. This represented a record high for the company,” said Heinz-Gerhard Wente. “This year, we again intend to up investments. In doing so, we shall, of course, be keeping a close eye on the market before actually going through with the investments.” The growth in America is largely due to the acquisition of the automotive air-conditioning arm of Parker Hannifin – one of the largest acquisitions in ContiTech’s corporate history. The construction of a new factory for oil production hoses in Brazil plays a particularly important role. ContiTech has invested in new equipment at numerous sites in Germany as well.
The key projects for 2013 include a research and development center for vibration control and bearing technology in China. It was dedicated in early March. Then there is the construction of a new plant for air-conditioning and power steering lines in Kaluga, Russia, which is to be completed at the turn of the year 2013/2014, and the purchase of a hose factory in Turkey for the rapidly growing oil & marine segment, which was concluded in late March. In Dubai, a sales and service support center is being set up. It is to be expanded into a hose assembly site. Assessing the prospects for the current year, Wente declared: “We continue to reckon with an upturn in the latter half of the year, particularly on the European market, so I am confident that we shall be able to achieve a rate of sales growth this year comparable to that of 2012.”
ContiTech at the Hanover Trade Fair
At this year’s Hannover Messe (booth F18 in hall 6), ContiTech will be demonstrating how its products and systems help safeguard supplies to people around the world, in keeping with its “We care!” slogan. ContiTech products serve to this effect in the food and beverage industry, in the provision of clean water, in the operation of irrigation systems, and, above all, in agricultural machinery and in the reliable extraction and transportation of raw materials. ContiTech’s “We care!” slogan also underscores the company’s use of eco-friendly technologies. “Our presentation at the trade fair and our leading principle of ‘Engineering Green Value’ underscore our claim of contributing to the general well-being of society,” affirms Heinz-Gerhard Wente.
This year, ContiTech has boosted its trade fair presence with a booth (B23) at the special “Motion, Drive & Automation” display in hall 25. There, the company is exhibiting drive solutions for mechanical engineering applications and two-wheelers, as well as vibration isolation components and hose lines.