Continental AG expects tariffs, foreign exchange to weigh on Q2 tyre margins

FRANKFURT, July 2 (Reuters) - German car parts supplier Continental AG CONG.DE 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.