Hanover, Germany – Continental AG has revised down its annual sales outlook, due mainly to lower demand from the automotive industry, which is currently experiencing serious supply chain disruptions.
Consolidated sales are expected to be approximately €32.5 to €33.5 billion, down from previous estimates of €33.5 to €34.5 billion, said Conti 22 Oct.
Adjusted EBIT margin is anticipated to be in the range of approximately 5.2% to 5.6%, considerably lower than the pervious estimate of 6.5% to 7.0%.
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 €17.2 to €17.5 billion, almost unchanged from the previous estimate of €17.2 to €17.8 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%.
Here, Conti said, the margin will likely be impacted by higher year-on-year raw material costs of around €550 million, which was previously estimated at €500 million, as well as higher costs for energy and logistics.
These effects, it added, will predominately affect the Tires business area.
In its third quarter preliminary results, Conti said sales in the Rubber Technologies group was up 0.5% at €4.385 billion in the three months to end of September, but did not provide a breakdown.