Continental's North American business posts loss in 2002

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.