Continental To Focus On EMs For Further Growth

Continental is expecting nearly a 10% y-o-y increase in its revenue this year on the back of a 5% to 10% y-o-y increase in global vehicle sales. While Continental's 2010 revenue of EUR25.5bn (US$33bn) surpassed its expectations of EUR25bn, BMI warns that rising costs of raw materials ? particularly rubber ? and reliance on Europe could dent its revenue this year. We, however, see opportunities in the company's increasing presence in emerging markets, where it is pursuing a strategy to supply parts for budget cars.

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