Published by Global Banking & Finance Review®
Posted on October 1, 2025
1 min readLast updated: January 21, 2026
Continental AG anticipates a major financial hit from U.S. tariffs in H2 2025, with stable tyre sales and a promising winter order book.
FRANKFURT (Reuters) -Continental AG expects a "high double-digit million-euro" hit from U.S. tariffs in the second half of 2025, it said on Wednesday, adding this already factored in a retroactive cut to 15% as of August.
The German automotive supplier, in a summary of a regular call with analysts and investors ahead of quarterly results, also said winter order books looked promising.
Third-quarter sales at the group's key tyre division are expected to remain stable year-on-year, Continental said, adding the profit margin at the unit would come in slightly closer to the lower end of the full-year guidance.
For its tyres division, Continental expects and adjusted operating profit margin of 12.5% to 14.0% in 2025.
($1 = 0.8524 euros)
(Reporting by Christoph Steitz. Editing by Jane Merriman)
A profit margin is a financial metric that shows the percentage of revenue that exceeds the costs of goods sold. It indicates how effectively a company is managing its expenses relative to its sales.
An operating profit margin measures the percentage of revenue left after covering operating expenses. It reflects the efficiency of a company's core business operations.
A retroactive cut refers to a reduction in rates or prices that is applied to a previous period. This means that the change affects transactions or agreements made before the announcement.
Year-on-year sales compare a company's sales figures from one year to the same period in the previous year. This metric helps assess growth or decline over time.
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