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.
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