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    Headlines

    Continental revises down profitability targets on trade turbulence

    Published by Global Banking and Finance Review

    Posted on June 24, 2025

    Featured image for article about Headlines

    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)

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