Commercial barriers and unfavorable exchange rates reduce Continental the profit. The company cut its forecast for the current year on Tuesday and only expects a profit margin of 10 to 11 percent. This span was cut by half a percentage point. This forecast contains the currently applicable tariffs and exchange rates, said CFO Olaf Schick (53).
The Continental share fluctuated significantly for the capital market day on Tuesday and moved 75.70 and 72.32 euros. Around noon the course was 73.60 euros – a minus of 0.62 percent.
In the medium term, Continental sees sales potential for the company after the automotive division is split-off of 19.5 to 22 billion euros and an adjusted profit margin of 12 to 14.5 percent. The tire business with 14.5 to 16 billion euros in sales and a profit margin of 13 to 16 percent of the lion’s share is eliminated.
Business with rubber products is for sale
The Contitech division, in which the business is bundled with rubber bands for industry, is said to contribute revenues of five to six billion euros and a margin of 11 to 13 percent. Continental has made this division for sale and would like to part with it in the coming year. The process is initiated, said Continental boss Nikolai Setzer (54). For the first time in its history, Continental will be a pure tire manufacturer.
Already in the second half of the year, the business with rubber products for automobile manufacturers is to be handed over, which has been part of Contitech so far. Setzer did not name the name of possible buyers. However, it will very likely be a financial investor. “We are currently in the process with the interested parties and still confident that we will end in the second half of the year.”