HANOVER, Germany—Continental A.G. is adjusting its financial outlook for fiscal 2022 due to the uncertain geopolitical situation, especially ongoing events in Eastern Europe and the impact of global materials prices and availability.
Continental said it expects earnings will be affected negatively, sufficient enough to lower the pre-tax operating ratio by as much as 15 percent from earlier forecasts, while revenue expectations are essentially unchanged.
Conti is basing its revised forecast in large part on lowered expectations for global passenger cars/light commercial vehicle production. Conti said production should increase by 4-6 percent over 2021, down from the company's outlook of 6-9 percent published on March 9.
Conti also is considering the negative effects from cost inflation for key inputs, especially for oil-based raw materials as well as for energy and logistics. Such factors are becoming increasingly more material for tires and ContiTech business divisions.