Latest news with #NikolaiSetzer
Yahoo
5 days ago
- Automotive
- Yahoo
Continental Q2 tyre margins hit by tariffs, currency headwinds
(Reuters) -German car parts supplier Continental reported a slightly lower than expected second-quarter profit margin at its core tyres business on Tuesday, citing headwinds related to U.S. import tariffs and foreign exchange rates. The company said its adjusted earnings before interest and taxes (EBIT) margin rose 12% in the April-June period, down from 14.7% a year ago, compared to a company-compiled consensus of 12.5%. 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%, higher than 3.8% 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New Straits Times
5 days ago
- Automotive
- New Straits Times
Continental Q2 tyre margins hit by tariffs, currency headwinds
German car parts supplier Continental reported a slightly lower than expected second-quarter profit margin at its core tyres business on Tuesday, citing headwinds related to US import tariffs and foreign exchange rates. 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.
Reuters
5 days ago
- Automotive
- Reuters
Continental Q2 tyre margins hit by tariffs, currency headwinds
Aug 5 (Reuters) - German car parts supplier Continental ( opens new tab reported a slightly lower than expected second-quarter profit margin at its core tyres business on Tuesday, citing headwinds related to U.S. import tariffs and foreign exchange rates. The company said its adjusted earnings before interest and taxes (EBIT) margin rose 12% in the April-June period, down from 14.7% a year ago, compared to a company-compiled consensus of 12.5%. 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%, higher than 3.8% 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.
Mint
24-06-2025
- Automotive
- Mint
Continental Cuts Margin Target Over US Tariffs Ahead of Breakup
Continental AG lowered a profitability target for the year due to rising costs from US President Donald Trump's tariffs as the German automotive supplier forges ahead with a plan to dismantle itself. Continental now sees an adjusted Ebit margin of as much as 11% for fiscal 2025, from as high as 11.5% previously, it said Tuesday ahead of an investor meeting in Frankfurt. The change reflects currency fluctuations as well as lower revenue expectations at its ContiTech industrial unit and the impact of US levies on the tires business. 'We have imports from Europe hit by tariffs since the beginning of May, and also need to consider steel and aluminum duties,' Chief Executive Officer Nikolai Setzer said during a call with reporters. 'That leads to higher production costs in the US.' Continental is tempering its earnings ambitions as it prepares to list its car parts division Aumovio in September and sell its industrial unit ContiTech next year to focus solely on tires. The plan reverses decades of acquisitions and is one of several strategic shakeups reordering Europe's automotive industry, which is contending with tariffs, intensifying competition from China and high labor and energy costs in Europe. Its peers ZF Friedrichshafen AG and Robert Bosch GmbH are cutting jobs and closing factories, while automakers including Porsche AG and its parent Volkswagen AG are reducing production capacity to deal with muted demand in their home region. Continental said Tuesday it may use proceeds from the ContiTech sale for special dividends and share buybacks, and announced new sales and profit ambitions for the combined tires and ContiTech operations. In the next three to five years, Continental sees potential for consolidated sales of as much as €22 billion and a consolidated adjusted earnings before interest and tax margin of as high as 14.5%. The most recent mid-term targets, announced in 2023, forecast that sales at the tires unit could reach €18 billion, and €9 billion at ContiTech. Those figures still included the contribution from OESL, a business that generated €1.9 billion in revenue last year and will be sold in the second half. 'The markets are weaker than what we expected back then,' Setzer said, citing slowing demand for cars and tires in Europe. 'In America we need to see how the tariffs play out.' As a smaller and more nimble manufacturer, Continental intends to grow its business selling high-performance tires while expanding in Asia and North America and leaving less promising sectors. It has already announced it's exiting agricultural tires and ending truck tire production in India. ContiTech employs almost 40,000 people globally and makes an array of rubber and plastics products. The listing of Aumovio, announced last August, followed years of struggles with high investment needs, waning demand and stiff competition. The tires business — Continental's most profitable division — generates most of its sales supplying passenger cars. This article was generated from an automated news agency feed without modifications to text.
Reuters
24-06-2025
- Automotive
- Reuters
Continental revises down profitability targets on trade turbulence
BERLIN, June 24 (Reuters) - German car parts supplier Continental ( opens new tab 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.
