Continental reports higher margins as cost-cutting measures sink in

* Continental reports higher margins as cost-cutting measures sink in Q2 profits up 40%, beating expectations * Sales outlook lowered amid dampened demand * Cost-cutting measures starting to take effect: CFO * Shares up 5% By Victoria Waldersee and Andrey Sychev BERLIN, - German car parts supplier Continental delivered better-than-expected results on Wednesday, even as auto demand remains under pressure, a sign that cost cutting is paying off and boosting its shares. "This could underpin promising early signs on 2025," Citi said, pointing to further cost-cutting measures expected next year. "RAYS OF HOPE" The car parts supplier has been fighting to keep costs in check and restructure in the face of a tumbling market capitalisation and weak auto demand. Wednesday's results were a "mix of some rays of hope", analysts at Bernstein Research said, pointing to high order intake in the automotive division.