After the weaker sales reports, the brand has decided to perform more deep cost-cutting, which includes job losses
The German automotive manufacturing company, Continental has reported a 20 percent fall in the third quarter in adjusted operating profit, as it expected production of cars and light trucks to drop by 6 percent.
CEO of Continental, Elmar Degenhart, stated “Thanks to the global demand for our systems and solutions, we were able to keep our sales at a stable level in the third quarter despite the continuing decline in the market environment. The current situation requires us to enhance our long-term competitiveness. With our global Transformation 2019–2029 structural program, we are taking the necessary steps to achieve this.”
After pre-releasing the sales report in October, the brand reiterated that consolidated sales in the third quarter were about 11.1 billion euros ($12.23 billion) and its adjusted EBIT margin was about 5.6%. Sales in the Automotive Group were about 6.5 billion euros, with an adjusted EBIT margin of about 1.6%.
“It is a challenging but essential process to ensure our viability. We are thus responding proactively to the crisis in the automotive industry and, like ten years ago, we will emerge stronger,” added Degenhart.
Continental has declared in the month of October that slower production growth of automobiles over the succeeding five years had insisted the car components manufacturer book a 2.5 billion euro ($2.8 billion) impairment. After the weaker sales reports, the brand has decided to perform more deep cost-cutting, which includes job losses.