German tyre manufacturer Continental saw profit rise in the first quarter despite lower turnover.
Thanks to strong tyre sales and cost savings, adjusted earnings before interest and taxes (EBIT) rose by just over 6% to €522 million ($612 million), the Hanover-based company announced on Wednesday.
Continental's net income rose to €200 million, almost three times as much as a year ago. Revenue, however, fell from €4.9 billion to €4.4 billion.
“We had a good operational start to the year,” said chief executive Christian Kötz.
"This gives us momentum," he added. "At the same time, geopolitical developments are creating greater uncertainty for consumers and for the economy as a whole."
In its core tyre business, Conti benefited from strong replacement tyre sales and the trend towards large, high-end car tyres, while raw material costs were lower.
However, chief financial officer Roland Welzbacher warned that the company would see prices for raw materials rise with a delay.
Last year, Continental spun off its automotive supply division and floated it on the stock exchange as Aumovio.
This year, the group also plans to divest itself of its plastics technology division, ContiTech. The company will then become focused on its core business as a tyre manufacturer.
