For 2013, German components supplier ContiTech, which is owned by the Continental Corporation, increased its sales by around 5%, to EUR3.9 billion. Heinz-Gerhard Wente, Head of the Continental ContiTech division and Chairman of the Executive Board of ContiTech, says that the company’s decisions in the past year were rigorously in line with sustainable and profitable growth. With the agreed purchase of the plastic and rubber specialist Veyance Technologies, the Hanover-based technology company is hoping to give its industrial business a significant boost. Growth also had a positive effect on the number of employees. ContiTech employed 29,725 people at the end of 2013, 1,500 more than in the year before.
EBIT improved by 2% to EUR462.1 million. EBIT adjusted for special effects rose to EUR465.3 million. ?This means that ContiTech is doing well once again – also in comparison to the other divisions at Continental,“ said Wente.
At 65%, most of its sales are generated in Europe, with the Americas (North and South America) accounting for 18%. ?The planned acquisition of Veyance Technologies Inc. will allow us to improve our market presence in regions in which we are still underrepresented at this time, particularly in North and South America,“ explained Wente. When Veyance has been fully included in consolidation, proportions for sales will shift to around 46% in Europe and 32% in the Americas.
In the past year, ContiTech has invested in new plants and locations worldwide, in research and development, and in the training of its employees. It invested EUR166 million into software and property, plant, and equipment.
The company has also stepped up its presence in Asia in particular. In China, ContiTech acquired Taizhou Fuju Rubber Belt Manufacture, a local drive-belt-producing company, and inaugurated a new production line for automotive interior foils in Zhangjiagang. In South Korea, it built a new hall for air spring production. ContiTech has also expanded its activities in Europe with acquisitions and the construction of new production facilities.
ContiTech is continuing its expansion this year. In addition to the planned acquisition of Veyance, ContiTech bought Inotec, a blow moulding specialist, at the start of April. It is developing the site in Vác, Hungary, into a competence centre for plastics. And in Brazil, the company is building a new factory for oil-production and gas-extraction hoses.
?We are optimistic overall about fiscal 2014. We have already had three promising months,“ summarised Wente. ?ContiTech is again aiming to boost sales another 5% this year. We also want to match the previous year’s income return, even if exchange rates negatively impact our results.“