The results posted by Continental for the first quarter were lower than expected due to the bad weather and fewer working days.
Continental finance chief Wolfgang Schaefer said that the company’s results for the first quarter were lower than expected as the bad weather and fewer working days were added to the slump in the European market. The German auto parts and tire maker reported a higher drop than the estimated 3% for the January-March period.
Schaefer said that although the first quarter results were lower than expected, the company is confident that business will slowly improve and reach the targeted increase of 5% for this year’s sales surpassing 34 billion euro ($44.53 billion). He also reiterated the company’s plan to increase overall business through purchases outside Europe.
Last week Continental began ABS production at its plant in Varzea Paulista close to Sao Paolo, Brazil. Continental has made an investment of 10 million euro to start ABS production at the Varzea Paulista plant, which until now manufactured only hydraulic brake systems.
Continental Electronic Brake Systems Business Unit Brazil head Michael Diehl said: “ABS production will be based on a two-shift system in the first half of 2013; three-shifts will then be worked in the second half of the year. We have taken on 80 new employees in order to achieve this.”