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)