HANOVER, Germany (Feb. 20, 2009)—Continental A.G. said it will increase cost-cutting measures this year after posting a net loss of $1.61 billion in 2008 compared with a profit of $1.49 billion in 2007.
The tire maker reported 2008 sales rose 45.8 percent to $35.5 billion after its acquisition of Siemens VDO.
The company's rubber and tire group's operating result was “outstanding” in light of difficult economic conditions, Chief financial Officer Alan Hippe said. The group posted sales of $13.7 billion and an earnings before interest and taxes of $1.44 billion.
Conti's automotive group achieved sales of $21.8 billion.
Conti didn't specify where it will cut costs but noted it reduced its work force to 139,155 after laying off 12,499. Contracts with some 5,000 temporary workers were not extended.
The company also said it is in “constructive talks” with its controlling shareholder, Schaeffler Group, to find ways the companies can cooperate.