FRANKFURT/BERLIN — Continental said it would step up cost savings after posting a drop in adjusted profit and a 1.2 billion-euro ($1.3 billion) net loss in 2019 as worldwide vehicle demand slumped.
Cost-cut plans will be presented in May because worldwide car production is expected to fall for the third year in row, by between 2 percent to 5 percent, CEO Elmar Degenhart said in a statement on Thursday. The CEO also said that forced redundancies may be necessary.
The net loss included non-cash, goodwill write-downs of 2.5 billion euros ($2.8 billion) due to diminished market expectations.
Adjusted earnings before interest and taxes fell 22 percent to 3.2 billion euros ($3.6 billion) in 2019. Full-year revenue came in at 44.5 billion euros ($49.7 billion), up slightly from 44.4 billion euros ($49.6 billion) in 2018.
Continental said it expects to deliver an adjusted EBIT margin of 5.5 percent to 6.5 percent this year.
“Conti remains a very large company which is not…