Continental AG reported earnings of €410.3 million (€2.82 per share) on sales of €6.81 billion for the six months ended June 30. Earnings for the first half of 2004 amounted to €257.6 million (€1.90 per-share) on sales of €6.16 billion.

"In the first six months, we made considerable progress toward our goal of achieving new top figures and are looking at the second half of the year with confidence," said Executive Board Chairman Manfred Wennemer.

Capital expenditures increased during the first half of 2005, with much of it focused on production lines for new-generation electronic brake systems, the company said. The Automotive Systems division increased sales by 3.4% to €2.65 billion from €2.56 billion. Earnings before interest and taxes improved by 13% to €278.3 million from €246.3 million, with return on sales rising to 10.5% from 9.6%.