Recent declines in raw materials prices, however, would not have an impact on its results until fiscal 2018, the German group pointed out in the financial statement.
For butadiene, a base material for synthetic rubber, Continental said it was leaving its forecast at $1.60 per kg.
On the other hand, Continental predicted further price pressure as a result of price increases for carbon black and a recent rise in the price of crude oil.
For the Rubber Group, it noted every $10 increase in the average price of crude oil equates to a negative annual gross effect on pre-tax operating earnings of around $50 million.
Continental said it estimated the average price of North Sea Brent at $54 per barrel in 2017, up from $44 per barrel in 2016.
Overall, Conti still figures the negative impact of rising prices of raw materials for the Rubber Group in fiscal 2017 to be around $530 million.
– Tire Business