PARIS—Michelin reported its net income rose 7.4 percent in 2012 to $2.02 billion, as operating income climbed 24.6 percent and sales 3.6 percent to $27.6 billion.
The company said it expects 2013 sales to be steady and operating income "stable."
Michelin attributed the improved earnings to the positive effects of higher pricing and a better product mix, which more than offset the negative effects of higher raw materials costs and lower sales volumes.
The French tire maker said operating profits rose to $3.11 billion
Improved pricing contributed nearly $1.4 billion to the firm's revenue increase, offsetting the negative effects of a 6.4-percent drop in sales volume, Michelin said, which reflected weak demand in many markets, particularly in Europe.
Revenue in North America, by contrast, rose 13.7 percent last year to $9.39 billion, Michelin reported, on the strength of original equipment sales and aftermarket penetration in the premium segments.