Source AP ©

French tire maker Michelin's profit increases sharply

The profit of the French tire-maker Michelin increased considerably in the first half, with strong tire sales bolstered by a cost-cutting plan.

Michelin said net earnings over the period rose 58 percent to Ђ436.7 million (US$599.24 million) from EUR 276 million.

The operating margin rose 2.2 percentage points to 10.2 percent. Michelin said it expects operating margin in the second half of the year to approach the first-half level.

Both results beat analyst expectations. A poll by Dow Jones Newswires had tapped the operating margin at 10.1 percent and net profit at EUR 421 million (US$577.7 million).

Previously, Michelin had promised only a "tangible improvement" in operating margin from the 8.2 percent level achieved in 2006 - much lower than the 10.2 percent announced Friday.

"For the full year 2007, in light of healthy demand, despite higher average raw material costs in the second half than in the first, Michelin confirms that fiscal 2007 should post a substantial improvement relative to financial year 2006," the company said.

Growing demand in its main markets, especially for truck tires in Europe, South America and Asia, led profits.

Michelin said it was able to pass on the rising cost of raw material prices to its customers.

Margins were helped by continued cost-cutting efforts in line with Michelin's stated plans to cut EUR 1.5 billion to 1.7 billion (US$2.06 billion to $2.33 billion) by 2010.

Comments
Keys to understanding the world from Feminism - Science and Feminism
Russia starts shipping S-400 air defence systems to China
Can Russia perform under Soviet flag during 2018 Winter Olympics?
USA to crush Russia's space industry in 2019
USA to crush Russia's space industry in 2019
Every Man Should Train His Prostate Daily
Putin's power shakes US Congress
Russia gets rid of world’s most powerful nuclear submarines
Russia's Status-6 'doomsday weapon' nullifies all of American military projects
Ukraine buries Minsk Accords
German experts name Russia's most dangerous weapon
Russia officially accuses USA of plotting major riots in Russia in 2018
Russia officially accuses USA of plotting major riots in Russia in 2018
Russia officially accuses USA of plotting major riots in Russia in 2018
Brigitte Bardot accuses Hollywood actresses of hypocrisy
Brigitte Bardot accuses Hollywood actresses of hypocrisy
Brigitte Bardot accuses Hollywood actresses of hypocrisy
Russia officially accuses USA of plotting major riots in Russia in 2018
Brigitte Bardot accuses Hollywood actresses of hypocrisy
Brigitte Bardot accuses Hollywood actresses of hypocrisy
UN General Assembly calls Russia ‘occupant power’