Shares of auto parts manufacturers are lower after peer Continental (CTTAY ) reduced its fiscal 2018 sales and margin views.

LOWERS GUIDANCE: Earlier Wednesday, Continental revised its guidance for FY18 due to lower sales expectations, cost increases, and warranty claims. The revised sales guidance for FY18, including all expected negative exchange-rate effects, amounts to about EUR45B versus the EUR46B projected earlier in the year. The lower sales guidance is a result primarily of two developments. First, the original equipment business fell short of expectations, especially in Europe and China in the Automotive divisions, as well as in the ContiTech division. Second, weak demand in the tire markets in both regions led to lower sales expectation.

Continental also lowered its FY18 adjusted EBIT margin view for the Automotive Group to about 7% from the previously anticipated 8.5%. Warranty claims will reduce the reported and the adjusted EBIT by a total of EUR150M. Weak demand in the tire market also led to lower sales expectations, according to the company.

PRICE ACTION: Shares of Continental are off earlier lows, but still down 13% in afternoon trading.

AUTO PART PEERS FALL: Shares of Continental’s peers in the OEM auto part space are all lower, including Stoneridge (SRI), Gentherm (THRM), Superior Industries (SUP), Tower International (TOWR), Gentex (GNTX), Delphi Technologies (DLPH), Lear (LEA), BorgWarner (BWA), Magna International (MGA), and American Axle (AXL).