“In the first half of the year, the weak market situation in North America was compensated by the favorable economic conditions in Europe and Asia. In the last quarter, however, there were drastic signs of slowing in all markets, whereby the dramatic declines in Europe in particular have negatively affected us. This trend will probably become even stronger, continuing far into 2009,” said Continental Executive Board chairman Dr. Karl-Thomas Neumann.
Continental plan to reduce endebtedness in fiscal 2008 by aiming for sales of €25 billion. On Thursday in Hanover, the international automotive supplier also confirmed their goal of an EBIT margin of about 8.5%. The 4th quarter, however, holds uncertainties due to the declining economy. In response to the substantial deterioration in the market situation, the company have initiated an extensive cost-saving program in addition to ongoing restructuring projects.