Continental Results Too Good to Last?

Analysts have raised questions about the long-term staying power of Continental AG’s recent spate of impressive financial results. “Continental’s “clean” EBIT of 420 million euros was 70 million euros above consensus and 100 million above our expectations,” Deutsche Bank analysts reported, adding: “With current high EBIT margins, in excess of 11 per cent, it’s difficult to see further improvement especially since 62 per cent of revenues are OE related and since OEMs are currently struggling.”