FRANKFURT, July 2 (Reuters) - German car parts supplier

Continental AG said on Wednesday headwinds related to

U.S. import tariffs and foreign exchange rates would hit sales

and profits at its core tyre division in the second quarter.

Quarterly sales at the division are expected to decrease

slightly while the adjusted EBIT margin would likely come in at

the lower end of the guidance, the group said in a summary of a

regular call with analysts and investors ahead of quarterly

results.

Continental had last week cut its outlook for the tyre

division, now expecting an adjusted EBIT margin of around

12.5-14.0% in 2025.

(Reporting by Christoph Steitz and Christina Amann; Editing by

Emelia Sithole-Matarise)