HANOVER, Germany — Continental A.G. has revised downward its annual sales outlook, due mainly to lower demand from the automotive industry, which is experiencing serious supply chain disruptions.
Consolidated sales are expected to be approximately $37.7 billion to $38.9 billion, down from previous estimates of $38.9 billion to $40 billion, Conti said.
Adjusted EBIT margin is anticipated to be in the range of 5.2% to 5.6%, considerably lower than the previous estimate of 6.5% to 7%.
Conti linked the decline mainly to "continued additional logistics expenses" within its automotive technologies segment.
In the rubber technologies segment, which includes tires and ContiTech, the group expects sales to come in at $19.9 billion to $20.3 billion, almost unchanged from the previous estimate of $19.9 billion to $20.6 billion.
The division's adjusted EBIT margin is expected to come in in the range of 12.3% to 12.7%, down from earlier forecast of 12.5% to 13.0%.
The margin will likely be impacted by higher year-on-year raw material costs of around $638 million, Conti said, which was previously estimated at $580 million, as well as higher costs for energy and logistics.
These effects will predominately affect the tires business area, the company added.
In its third quarter preliminary results, Conti said sales in the Rubber Technologies group was up 0.5% at $5.09 billion in the three months to end of September, but did not provide a breakdown.