Finances Mar Growth Prospects For Continental

An 18% year-on-year (y-o-y) increase in sales to EUR22.6bn (US$31.3bn) during the first nine months of 2011 has made German automotive parts supplier Continental confident of its end-year sales target of at least EUR29.5bn (US$40.6bn). Although such a financial performance will clearly mark a strong recovery from the lows of 2009, BMI is cautious that elevated raw material prices could cut deeper into its profits, which have failed to show impressive growth over the years. Another significant factor is its huge debt burden, which stood at EUR7.3bn (US$10bn) in the end of Q311. However, we see opportunities in the company's

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