Hippe Expects CTNA Losses Again in 2006
(Akron/Tire Review) Continental AG expects its U.S. operations to continue losing money at least through this year, according to an interview by Euro magazine with Alan Hippe, Continental’s CFO and president of Continental Tire North America (CTNA).
“It could be possible that losses will be made again in 2006,” Hippe told the magazine. Hippe also suggested that rising raw material costs could hamper CTNA even more.
He did tell the magazine that for the first quarter of 2006, CTNA’s loss was lower than for the same period in 2005. Hippe attributed the gain to increased sales of higher margin replacement passenger and light truck/SUV tyres.
In the interview, Hippe denied reports that Continental intends to close its Charlotte, N.C., tire plant. “We have not yet reached a decision to cut around 500 jobs by early July. We will not close the manufacturing site,” he said.