HANOVER, Germany (April 10)—Continental Tire North America Inc. fell $103 million into the red on an operating basis last year and likely won't break even before fiscal 2005, Continental A.G. officials said recently. Continental Tire, which generates about $1.5 billion in sales annually, reportedly will be $100 million in the red again this year, according to a report by financial market analysts Morgan Stanley International & Co. Ltd., which said Conti management expects to effect a turnaround through cost reductions and improved brand management, including a greater emphasis on the Continental brand. It was the second consecutive year in the red for Continental Tire North America; it reported a $297.2 million operating loss in 2001 after taking a $182 million charge to cover a factory closing in Mexico and other measures. At a fiscal 2002 earnings press conference in Hanover, company officials said management is evaluating its options regarding restructuring and cost cutting, but ruled out plant closings as an option.
Continental's North American business posts loss in 2002
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