GERMANY: Continental cuts jobs in Germany
Continental AG, is cutting 120 jobs at its Hannover truck tyre plant.
The news follows an announcement yesterday that the company was lowering its profit forecast amidst a worsening economic environment. The company said it now expects its margin on earnings before interest and tax (EBIT) to be about 8.5% in 2008, rather than the 9.3% that it had originally targeted.
The company blamed a worsening outlook in the vehicle markets of North America and western Europe in the third quarter and on-going high raw material costs. The company's tyre business (not including passenger car tyres) has contracted by around 10% in the first months of the year. European production has fallen by around 6.5%, according to dpa.
In 2007 Continental achieved a turnover of 1.5bn euros in its truck, bus and industrial vehicle tyre business. Around 8,000 people are employed in the sector.