Auto Parts Firm Continental Posts Operating Profit

Company credits cost cutting program

The German auto parts company Continental said on July 20 it made an operating profit in the second quarter of 2009 owing to an extensive cost-cutting program.

"In an extremely difficult business environment and despite the current paralysis due to its uncertain future, Continental still achieved its operating goals," chairman Karl-Thomas Neumann said.

The company posted a pre-tax profit of 38.8 million euros (US$55 million), with Neumann crediting "the most extensive cost-cutting package in the company's history" for the result.

In the previous quarter, Continental had reported an operating loss of 165 million euros. Second quarter sales fell heavily however, losing almost 30% to 4.76 billion euros.

Neumann noted that Continental had to cut around 16,000 jobs since September 2008, but said its measures "are showing increasing positive results."

Copyright Agence France-Presse, 2009

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