Continental says North America light vehicle output down over 'economic uncertainty'

BERLIN (Reuters) -Continental AG expects production of light vehicles in North America to fall by around 7% in the first quarter, the German auto supplier said on Tuesday, citing "economic uncertainty" ahead of looming tariffs on the sector.

In the group's automotive division, the adjusted margin on earnings before interest and tax is expected to break even in the first three months of the year, the group said in a summary of a regular call with analysts and investors ahead of quarterly results.

"The current tariff situation and the development of new product launches are creating high levels of uncertainty, impacting strategic planning and market predictions," Continental said.

The comments come ahead of earlier announced U.S. import tariffs on cars that come into force on April 3, with broader duties expected to be announced by U.S. President Donald Trump on Wednesday.

Continental, which is scheduled to release first-quarter results on May 6, said that first-quarter light vehicle production in China was expected to increase by a mid-to-high single digit percentage, better than previously expected.

In the automotive segment, Continental's largest division by revenue, the group expects positive contributions from cost cuts in the January-March period.

(Reporting by Victoria Waldersee and Christoph SteitzEditing by Tomasz Janowski)