Conti had already prepared investors for a bad result in March.
(Photo: dpa)
Dusseldorf The automotive supplier Continental is downgrading its profit forecast in view of the increase in costs caused by the war in Ukraine. “The negative effects of the cost increases for important supplies, especially for oil-based raw materials and in the energy sector and logistics for Tires and ContiTech, are increasing significantly,” said the Dax group from Hanover on Thursday.
The adjusted EBIT margin is expected to be between 4.7 and 5.7 percent. At the beginning of March, the group had still assumed a return of between 5.5 and 6.5 percent. Continental specified the outlook for consolidated sales. The management now expects a range between 38.3 and 40.1 billion euros.
In the first quarter, the Group’s return almost halved to 4.7 percent (previous year: 8.5 percent). The automotive division was in the red, while the tire business increased its earning power somewhat.
Conti had already prepared investors for a bad result in March. Depending on the extent of the turmoil, both sales and earnings in all divisions could be lower than in the previous year, it had been said. In 2021, after two years of losses, the group managed to return to the profit zone.
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