CLERMONT-FERRAND, France (July 27) — Michelin reported double-digit operating and net profit gains in the first half with sales increasing 4.7 percent to $11.3 billion on positive volume in several markets and price/mix improvements.
Net income grew 57.6 percent to $587.9 million as operating income also improved 64.4 percent to $1.07 billion.
Michelin said it performed well in passenger car/light truck markets in Europe, South America, Africa and the Middle East.
The company also experienced strong growth in truck tire sales in Europe, South America and Asia in both the OE and replacement segments.
At the same time, North American demand in this segment was weak, the company said.
Sales in the firm´s specialty operations — earthmover, aircraft, etc., tires — were up 13.4 percent in the half to $1.57 billion, with segment operating earnings up 14.8 percent.
Managing Partner Michel Rollier said Michelin´s results confirm its ability to "achieve significant operating margin improvements before non-recurring items."
He added the firm will continue initiatives aimed at reducing overhead costs and optimizing its industrial base worldwide.