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Germany's Continental seeks cost cuts as second-quarter profit drops

Germany's Continental seeks cost cuts as second-quarter profit drops
FILE PHOTO: Logo of German tyre company Continental is seen before the annual news conference in Hanover, Germany March 2, 2017. REUTERS/Fabian Bimmer -
Fabian Bimmer(Reuters)
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BERLIN (Reuters) – Continental AG <CONG.DE>, Europe’s largest listed automotive supplier by revenues, said it was seeking to cut costs after its net profit dropped 41% year-on-year in the second quarter.

“We are responding to the declining market by ensuring rigorous cost discipline and enhancing our competitiveness,” CEO Elmar Degenhart said in a statement

The Hanover-based company also said it would not invest in battery cell production.

It confirmed its full-year outlook, which it had lowered last month, citing an expected decline in global vehicle production.

(Reporting by Thomas Seythal; Additional reporting by Jan Schwartz in Hamburg; Editing by Michelle Martin)

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