ML Michelin

   By Sarah Sloat 
 

Compagnie Generale des Etablissements Michelin (ML.FR) said Thursday that first-half net profit declined despite a rise in sales.

The French tire maker said net profit was 844 million euros ($940 million) in the six months ended June 30, from EUR917 million in the period a year earlier, in part due to expenses that didn't occur a year earlier. Revenue rose to EUR11.78 billion from EUR10.60 billion.

The profit was below expectations. Analysts had forecast Michelin to post net profit of EUR950 million and revenue of EUR11.76 billion, according to a consensus forecast provided by FactSet.

The company confirmed its guidance for volume development in line with market trends. In the year, Michelin expects the passenger-car and light-truck-tire markets to decline by 1%.

Segment operating income should exceed the 2018 figure at constant exchange rates before the contribution of the recent Camso and Fenner acquisitions. The impact of raw materials costs and customs duties in 2019 is estimated to come around a negative EUR100 million, as previously forecast, it said.

Write to Sarah Sloat at sarah.sloat@dowjones.com

(END) Dow Jones Newswires

July 25, 2019 12:26 ET (16:26 GMT)

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