Continental Posts Better-Than-Expected Margin on Cost Cuts (1)

Continental AG outperformed expectations in the third quarter after the German tire maker cut costs and sold more of its pricier products.

The manufacturer sees an adjusted earnings before interest and tax margin of 11.4% for the period, beating a company-compiled analyst consensus. Sales also came in slightly ahead of expectations, Continental said Thursday, citing preliminary figures.

A strong start to the winter tire business and lower fixed costs helped offset drag from lower volumes, exchange rate effects and tariffs, the company said. That contrasts with France’s Michelin, which earlier this week cut its outlook following a bigger-than-expected sales slump ...