Porsche AG cut its sales and profitability guidance for the year, warning of hits from U.S. import tariffs and a realignment of its battery activities, as challenges mount for the German premium sports-car maker.

Porsche's margins plunged in the first quarter, the sportscar maker said on Tuesday, forcing it to cut its outlook due to weakness in its key market China, a slowing shift to electric cars and U.S. tariffs that are disrupting the global car industry.

Porsche AG expects its profit margin to slip into single digits this year, with the luxury-car maker warning about US tariffs and higher costs from weak electric-vehicle adoption.