CHARLOTTE, N.C. -- Continental AG CFO and Continental Tire North America president Alan Hippe said the German tiremaker may consider selling off its truck tire business.

During a conference call with financial analysts, Hippe said, “Should the division be unable to reach the targeted margin, we will have to consider a divestment,” according to a Reuters report.

His comments came after first quarter results showed that sales and profits for the truck tire unit did not reach Continental AG’s expectations. Conti’s truck tire unit posted EBIT of 3.8 percent for the period, well below the company’s target 10 percent EBIT margin.

According to Reuters, Conti CEO Manfred Wennemer said last week that the truck tire division is getting a hard look. “We've been looking at that division for some years now, and as before, I don't want to rule out we're selling off the division,” he was quoted as saying. (Courtesy of Tire Review)