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Continental revises down profitability targets on trade turbulence
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Continental revises down profitability targets on trade turbulence
Jun 24, 2025 2:53 AM

BERLIN, June 24 (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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