HANOVER, Germany — Continental A.G. is assessing additional cost-cutting measures in response to the growing market deterioration in the wake of Covid-19 pandemic, the company told European Rubber Journal this week.
"The extent of further potential measures will be aligned with the medium-term market development," Silke Bernhardt, head of communications of Conti's tires business area, said without giving further details.
The comments came in response to a recent report by German news weekly WirtschaftsWoche, which cited Conti CEO Elmar Degenhart suggesting possible forced layoffs in an internal company video.
"The subject of current reporting (Wirtschaftswoche) are statements made in the context of an internal event of Continental A.G. ... We generally do not comment on this," Ms. Bernhardt said in a written statement to ERJ.
Continental disclosed that it was taking a series of new cost-cutting measures in March in addition to its 10-year structural program, which was announced in September last year.
The program focuses on the medium- and long-term competitiveness of the German group driven by transformation within the automotive industry.
"As soon as the current highly volatile market environment has stabilized and we can better predict how it will develop, ... [the company] will consider and decide any additional measures that may become necessary," Ms. Bernhardt added.
Continental reported weak results in May for the quarter ended March 31, posting a 21% decline in earnings on 11% lower sales.
The German supplier has said that it expects the second quarter to be "the weakest" this year, with the impact of coronavirus likely to be particularly severe in Europe and North America.