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 slashed its financial outlook, as the sports-car maker struggled in China and said tariffs are hurting its business in the U.S.