Nov 4 (Reuters) – German car parts supplier Continental (CONG.DE), raised its 2026 profitability outlook on Wednesday after strong demand for high-margin tyres helped it beat third-quarter earnings expectations, despite rising raw-material costs.
The company now expects a full-year operating profit margin of 13.4% to 14%, excluding the discontinued ContiTech operations, up from a previous range of 12% to 13.5%.
A company-provided, opens new tab analyst consensus had forecast a full-year operating margin of 13.7% on average.The Hanover-based company reported third-quarter adjusted earnings before interest and taxes (EBIT) of €514 million, above the €480 million consensus.
“Large, high-performance tires are a key driver of our business. However, higher raw-material prices are increasingly affecting our earnings and will impact us even more in the fourth quarter,” CFO Roland Welzbacher said.
Continental, which relies on oil‑derived raw materials to make synthetic rubber for its tyre production, had previously warned that significantly higher oil prices due to the war in the Middle East over a longer period would drive up costs.In August, it said it expected triple-digit-million-euro raw material tailwinds seen in the first half of 2026 to fully reverse in the second half.
The company said it is working with an oil price assumption of about $85 a barrel until the end of the year.
Reporting by Emanuele Berro and Conrad Kuepper in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham
