Continental Cuts Margin Target Over Tariffs Ahead of Breakup

Continental AG lowered a profitability target for the year due to rising costs from US President Donald Trump’s tariffs as the German automotive supplier forges ahead with a plan to dismantle itself.

Continental now sees an adjusted Ebit margin of as much as 11% for this fiscal year, from as high as 11.5% previously. The change reflects lower revenue at its ContiTech industrial unit and the impact of US levies on the tires business. The Aumovio car-parts division, which isn’t included in the outlook because of its planned spinoff in September, on Tuesday unveiled plans to improve its margin.