Continental AG revenues plummet 40 percent

Revenues at the automobile parts producer Continental fell 40 percent to €6.6 billion for the second quarter of the year. It's a direct result of the closure of most of Europe's automobile manufacturers that took place during the initial outbreak of the pandemic. On an adjusted basis, the company made a gross loss of €636 million. CEO Elmar Degenhard said a recent shareholders meeting that he expected revenues to fall during the third quarter as well. He has warned that Continental will have to increase its cost reduction measures in order to achieve hundreds of millions of euro in savings by 2022. But while Continental's current numbers are poor, its overall financial health is still strong and it doesn't expect to request support from the government. Its tire division saw sales fall just 33 percent but it made a slight profit. Its auto parts division suffered a 46 percent drop in sales and it made an operating loss of €463 million.