Continental AG, is cutting 120 jobs at its Hannover truck tyre plant.
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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.
