FRANKFURT, July 31 (Reuters) - German tyre and car parts maker Continental AG confirmed on Wednesday it was back on the right track, posting first half core earnings which beat analysts' expectations.
Continental said its first half earnings before interest, tax and amortisation (EBITA) rose 70 percent to 347 million euros ($340 million) while sales were up 2.9 percent at 5.659 billion euros. A Reuters poll of 10 analysts had forecast EBITA of 301 million euros on sales of 5.682 billion euros.
The company has been closing unprofitable tyre plants around the globe in a bid to shift out of low margin activities and benefit more from high-end electronics systems which are less susceptible to pricing pressure from carmakers.
Continental also said it had cut its debt in the first half by 540 million euros to 2.681 billion euros and reiterated its profit outlook for the year, saying it expected a slight rise in 2002 sales and significant improvement in profit.