HANNOVER, Germany — Citing exchange rate and inventory valuation effects, Continental A.G. has revised downward its projected 2018 adjusted pre-tax operating result for the firm's Rubber Group by roughly $125 million.
Conti said the situation primarily affects the tire business. It did not elaborate on the reasons listed, but said they would impact earnings by about $188 million for the first half of fiscal 2018.
"At present, we do not assume that we will be able to compensate for these negative effects in the Rubber Group over the course of the year," Conti said.
As a result, Conti is lowering its outlook for the Rubber Group's adjusted EBIT margin to 14-plus percent from about 15 percent. The revised forecast will cut Conti's overall corporate operating margin by a half point to 10 percent, the company added.
Continental will publish consolidated sales and EBIT data for the first quarter at its annual shareholders' meeting on April 27. The complete Q1 financial report will be published on May 8.