Continental Tyres Hit by Auto Industry Slump
By Katherine Clarkson
Continental tyres announced it suffered a huge 35.2 per cent plunge in sales during the first quarter of the year.
The global economic downturn has caused the German tyres manufacturer to lose £238 million against a profit of £150 million for the same period last year.
Despite having undertaken the largest reduction programme in the company’s history, Continental admitted that in view of the continuing turbulence in financial markets, the global recession and “lack of reliable underlying data,” it couldn’t forecast how the year would develop as a whole.
Karl-Thomas Neumann, Continental’s executive board chairman, said: “We acted resolutely in putting the brakes on spending but were unable to compensate for these enormous tremors in the market.
“The business environment will remain very difficult in the second quarter as well. So, compliance with the agreed key financial will still pose a major challenge.”
However, Mr Neumann added that a slight improvement in market conditions in March indicate the company will likely meet those agreements.
Number: Z8037079
Reg: NKF419
