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Chris Bryant

Why Tires Are More Profitable Than Mercedes

But rubber price rebound could trigger a skid
Second Day Of The 86th Geneva Motor Show
Photographer: Jason Alden

Seeking a haven from plunging commodity prices? Look no further than the humble tiremaker, whose profit-making prowess appears anything but dull.

Germany's Continental on Thursday reported a 20.4 percent full-year adjusted operating margin at its tire division, far higher than the company's average of 11.8 percent. To put it in context, luxury carmaker Mercedes-Benz achieved only a 10 percent auto division operating margin last year.