HANNOVER (dpa-AFX) - The automotive supplier and tire manufacturer Continental expects lower sales this year than previously in a weaker environment. Because Conti is now assuming lower car production by manufacturers, especially in Europe, and the market development in the North American tire replacement business is also weaker, CEO Nikolai Setzer trimmed the sales forecast to 40 to 42.5 billion euros, as the Hanover-based company announced on Wednesday. Previously, 41 to 44 billion euros had been targeted. Conti is sticking to its previous target range for the operating profit margin before interest, taxes and special items. However, the outlook for operating profit in the automotive supply segment alone has clouded over somewhat. On Monday, the Group announced its intention to spin off the automotive supply business via a spin-off on the stock exchange.

In the second quarter, the largest part of the Group performed significantly better than a year earlier. The cost-cutting program with job cuts and price renegotiations with car manufacturers reportedly had an effect, which should benefit the Lower Saxony-based company even more in the coming quarters.

The Group's operating result rose by almost 41 percent year-on-year to 704 million euros, which was better than analysts had expected. At 305 million euros, the bottom line was almost half as profitable. However, turnover fell by a good 4 percent to 10.0 billion euros./men/mis