Published by Global Banking & Finance Review®
Posted on June 24, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleContinental revises down its profitability targets due to trade challenges, impacting its tyre business and overall group outlook. The company plans to sell its ContiTech division and spin off its automotive business.
BERLIN (Reuters) -German car parts supplier Continental revised down profitability targets for its core tyre business and with it the broader group on Tuesday, pointing to currency effects and increasing trade barriers.
The company now sees its 2025 adjusted EBIT margin for tyres in a range of 12.5 to 14%, compared with a previously forecast 13.3-14.3% range, it told investors at the group's capital markets day.
The adjusted EBIT margin for the group this year is now expected to fall in a range of 10 to 11%, compared with a previously forecast 10.5-11.5% range.
The new outlook takes into account current U.S. import tariffs, the company said.
Continental also confirmed plans to sell its ContiTech division next year, as it works to pare back the company into a pure-play tyre maker.
"Unfortunately, the reasons for our internal transformation are also increasing every day," CEO Nikolai Setzer told reporters, pointing to macroeconomic challenges for the industry and geopolitical turbulence, with tariffs weighing on its supply chain.
The company is also planning a spinoff of its automotive business, under the new name Aumovio, with a planned listing in September.
"We already have a date. Our preparations are taking very firm shape," CFO Olaf Schick said, adding that Aumovio would announce details in due course.
(Reporting by Rachel More, editing by Thomas Seythal)
Continental now expects its 2025 adjusted EBIT margin for tyres to be between 12.5% and 14%, down from the previous forecast of 13.3% to 14.3%.
The company cited currency effects, U.S. import tariffs, and macroeconomic challenges as reasons for the downward revision of its profitability targets.
Continental has confirmed plans to sell its ContiTech division next year as part of its strategy to focus solely on its tyre business.
Continental is planning a spinoff of its automotive business under the new name Aumovio, with a planned listing in September.
CEO Nikolai Setzer mentioned that the reasons for the company's internal transformation are increasing daily, highlighting the macroeconomic challenges facing the industry.
Explore more articles in the Headlines category
