Continental to Pay Bonus to All Eligible Staff Despite 2019 Net Loss

By Jessica Sier

Continental AG will pay a bonus to all eligible employees despite a disappointing result for 2019, the company said Thursday.

Employees in Germany will each receive a bonus of 436 euros ($477), while others receive EUR218 each. To be eligible, they must have been employed at the German automotive-parts manufacturer for all of 2019.

According to the existing agreement, the company could have waived the profit-sharing bonus after it reported a EUR1.23 billion net loss for 2019 and cut its dividend earlier this month.

"We are clearly not satisfied with the result in 2019," said Ariane Reinhart, executive board member for human relations. "But the commitment of our employees truly deserved a better economic result."

The bonus for 2018 in Germany was around EUR750 per employee.

Continental is also initiating a program to assist in retraining employees in a shifting industry, particularly given the company's plans to spin off its Vitesco Technologies division.

Write to Jessica Sier at [e-mail]

(END) Dow Jones Newswires

March 19, 2020 10:55 ET (14:55 GMT)

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