Continental Q2 tyre margins hit by tariffs, currency headwinds
The company said its adjusted earnings before interest and taxes (EBIT) margin rose 12 per cent in the April-June period, down from 14.7 per cent a year ago, compared to a company-compiled consensus of 12.5 per cent.
In June, the firm cut its profitability targets for both its core tyre business and the broader group.
Continental is in the process of splitting off two of its three businesses, seeking to reposition itself as a pure-play tyre maker that it hopes will leave it better placed to handle a volatile market rattled by tariffs imposed by the United States.
The automotive division generated profit margin of 4 per cent, higher than 3.8 per cent expected by analysts, thanks to cost-cutting measures and sustained price adjustments, the company said, adding it showed a positive momentum ahead of its listing on stock exchange on September 18.
"We've worked hard to make our group sectors more resilient and more agile," CEO Nikolai Setzer said in a statement.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
![[UPDATED] Anwar: Revised US tariffs won't impact Malaysia's semiconductor sector](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fimages%2Farticles%2F06nt02nuo_1754542926.jpg&w=3840&q=100)
![[UPDATED] Anwar: Revised US tariffs won't impact Malaysia's semiconductor sector](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fassets%2FNST-Logo%402x.png%3Fid%3Db37a17055cb1ffea01f5&w=48&q=75){kind=small}
New Straits Times
23 minutes ago
- New Straits Times
[UPDATED] Anwar: Revised US tariffs won't impact Malaysia's semiconductor sector
PUTRAJAYA: Malaysia's semiconductor industry will not be significantly affected by the revised United States tariffs, said Prime Minister Datuk Seri Anwar Ibrahim. Anwar said the companies impacted were either American firms or ones that would continue to invest and produce in the US. "Many of you brought up anxieties about the tariffs on semiconductors this morning. Before this, we were exempted," he said. "Most of these companies are American companies or companies that will continue its investments and production in America. "As of now, I think there is no effect. It's just that there are few that are excluded from the tariff conditions." He cited the German-based Infineon Technologies, which he previously said could potentially invest RM30 billion in Malaysia, had sufficient demand in Europe. "We are monitoring the situation," Anwar added. The prime minister was speaking during his closing address at the firstBudget 2026 engagement session between the government and nearly 300 stakeholders, here, today. Earlier, Finance Minister II, Datuk Seri Amir Hamzah Azizan said that Budget 2026, to be tabled on Oct 10, will focus on enhancing Malaysia's competitive edge in high-value industries such as semiconductors, renewable energy, the Islamic economy, digitalisation and artificial intelligence (AI), while also "raising the floor" through inclusive and targeted measures.
The Star
an hour ago
- The Star
Semiconductor industry unlikely to be severely affected by revised tariffs, says Anwar
PUTRAJAYA: The country's semiconductor industry is unlikely to be severely affected by the revised tariffs announced by the United States, says Datuk Seri Anwar Ibrahim. The Prime Minister said that Malaysia was grateful to secure a 19% tariff rate in recent negotiations, a relatively favourable outcome compared to other neighbouring countries, adding that it could possibly be due to the country's success in helping resolve the Thailand-Cambodia conflict. "Tariff concerns, particularly in the semiconductor industry, have caused significant unease recently. "Previously, these were mostly exempted. "However, most of these companies are US-based or already have commitments to continue their investments and production in the US, so they won't be severely affected," he said in his speech during the 2026 Budget Consultation Council at the Finance Ministry here on Thursday (Aug 7). Anwar said, however, there are some exceptions such as Infineon, a German semiconductor manufacturer, that mainly caters to the needs of Germany and Europe, as well as others. "So, we're monitoring the situation," said Anwar. Earlier, US President Donald Trump announced sweeping new tariffs on countries worldwide, which have now come into effect, escalating his trade war. Trump plans to impose 100% tariffs on semiconductors imported from countries that do not produce, or do not plan to produce, chips within the US and only companies that have invested in or are building chip-manufacturing facilities in the US would reportedly be exempt.
New Straits Times
5 hours ago
- New Straits Times
Trump tariffs don't spare his fans in EU
HUNGARIAN Prime Minister Viktor Orban promised that the return of his "dear friend" Donald Trump as US president would usher in a new "golden age." But trade unionist Zoltan Laszlo says Hungary's auto industry has seen the opposite as the United States announced new tariffs, with order cancellations and workflow disruptions marking employees' day-to-day experience. With tariff rates rising from 2.5 per cent before Trump's return to around 25 per cent and finally to 15 per cent, the "American tariff slalom" has caused nothing but chaos in the car industry, said Laszlo, who represents workers at Mexican automotive parts manufacturer Nemak's Hungarian plant. In recent years, Hungary and neighbouring Slovakia have become European manufacturing hubs for global car brands seeking lower labour costs, including British Jaguar Land Rover, German Mercedes and Japanese Suzuki. But due to the export-oriented nature of their automotive sectors, catering in part to the US market, they are among those EU nations hardest-hit by the latest tariffs slated to kick in on August 7. Despite hailing Trump's comeback and visiting him twice at his Mar-a-Lago luxury estate last year, Orban – his closest EU ally – was not spared the pain. Neither were more favourable conditions extended to Slovakian Prime Minister Robert Fico, whose country is the world's largest automobile manufacturer per capita. According to analyst Matej Hornak, the incoming tariffs won't bode well. He warns of a drop in exports amounting to "several hundred million euros" and the loss of "10,000-12,000" jobs in the sector. After the announcement of the EU-US trade deal, Orban was quick to apportion blame to EU Commission president Ursula von der Leyen, saying Trump "ate" her "for breakfast." But in April, the mayor of the Hungarian city of Gyor, whose strong economic growth is closely linked to its car manufacturing plants, had already warned of possible cutbacks and layoffs. For the city, which is home to various global brands and more than a dozen different parts and component suppliers including Nemak, the fresh tariffs are a disaster. As one of the biggest employers in Hungary, German carmaker Volkswagen alone provides jobs for more than 12,000 people. Its main engine factory in Gyor produces some Audi-branded vehicles directly for the US market. The Hungarian government has said that it is still assessing the impact of the tariff rates, vowing that upcoming business deals with Washington could mitigate the negative effects of Trump's "America first" policy. But more headwinds are ahead for Hungary and Slovakia, said Brussels-based geopolitical analyst Botond Feledy. "When it comes to European dealmaking, Trump now prioritises more geopolitically influential figures – the main option for smaller nations such as Slovakia and Hungary is to join forces with others," he told AFP. But the "aggressive posturing" in the same vein of Trump's protectionist policies both countries adopted in recent months have isolated them among fellow EU countries, making compromises difficult, the expert added. Moreover, the stakes are high for Orban, whose 15-year rule has recently been challenged by former government insider-turned-rival Peter Magyar ahead of elections scheduled for next spring. "Dissatisfaction with the standard of living has made voters more critical, which is also reflected in the popularity ratings of the governing parties," said economist Zoltan Pogatsa, adding that "Hungary has been in a state of near stagnation for many years now." This year's economic "flying start" touted by Orban did not materialise, with the government further lowering the country's growth goal from the initial 3.4 to one per cent. "So far, Trump's second presidency has only impacted the Hungarian economy through his tariff policy, which has been negative," Pogatsa added. At the Nemak plant, a recent warning strike has led to management promising to sort out the unpredictable work schedules caused by the tariff changes, which were "unhealthy and physically unbearable" and made "family and private life become incompatible with work", said Laszlo. * The writers are from AFP
