TOUGH TIMES: Continental is confident of sales the remainder of the year. Image: Shutterstock
FRANKFURT, Germany - Continental, a German maker of tyres and car parts, is confident after sales and underlying profits increased in the first three months of 2015.
Chief executive Elmar Degenhart said in a statement: "As anticipated, Continental has had a positive start to 2015."
First-quarter sales climbed by 14% to the equivalent of R125-billion. Underlying or operating profit rose "to around R13-billion a year earlier.
Degenhart added: "Given the sluggish development in our sales markets, the start to the current year was very encouraging. We anticipate that the replacement tyre market in Europe will improve in the quarters ahead.
"As a result of the positive development in new registrations particularly in Western Europe, we also expect an increase in the number of cars produced and our sales and earnings will continue to improve in coming quarters."
Continental is scheduled to publish full details of its 2015 first-quarter earnings on May 7.