Exchange rate and inventory valuation effects will impact earnings by around EUR150 million in H1 2018. This negative impact affects primarily the tire business. Accordingly, the adjusted operating result (adjusted EBIT*) for Q1 2018 in the Rubber Group will be about EUR100 million lower than in the respective period of the prior year.
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. We are therefore lowering our outlook for the adjusted EBIT margin of the Rubber Group from about 15% to more than 14% for 2018.
For the corporation, this also results in a decrease in the forecast of the adjusted EBIT margin from about 10.5% to more than 10%. All other elements of the outlook we published on March 8, 2018 remain unchanged.
Continental will publish initial key data (consolidated sales and EBIT*) for Q1 2018 on the occasion of its Annual Shareholders' Meeting on April 27, 2018. The financial report for Q1 2018 will be published on May 8, 2018.
"EBIT adjusted", "EBIT" as defined in the annual report 2017, pp 38/39 (Glossary of financial terms). Download under www.continental-ir.com
Contact:Person making the notification: Rolf Woller, Head of IR
Continental AG / Key word(s): Profit Warning
Continental AG: Change of Outlook for FY 2018
18-Apr-2018 / 10:49 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.