Loading...
See More

Michelin profits rise, but caution remains

Feb 12 2013 12:43 AFP

Related Articles

Tyre sector strike over at some companies

Tyre makers fingered over price-fixing

Tyre and rubber workers down tools

Tyre workers to strike

Continental hikes tyre prices

Tyre sector workers march

 

Paris - French tyre-making giant Michelin reported on Tuesday a 7.4% rise in net profit in 2012 with a boost from capital gains but was cautious about this year while holding medium-term targets.

The group reported a rise in net profit from the 2011 level to €1.6bn ($2.14bn) and said that operating profit before non-recurrent items surged by 25.0% to €2.4bn.

But the price of shares in the company fell by 3.73% in early trading to €69.99, marking the biggest fall on the CAC 40 index which was down overall by 0.23%.

In the last 12 months, the share has risen by about 30.0%.

At Global Equities, trader Xavier de Villepion commented that "this good news is behind us and has been factored in by the market for a long time."

He said that the outlook for this year looked far more uncertain, and this was a concern to investors.

The group said that the outcome for 2012 reflected effective pricing, the strength of a global presence and a limited impact from the price of raw materials.

Sales rose by 3.6% to €21.5bn but the volume of business fell by 6.4% because demand remained sluggish in the second half of the year, Michelin said.

The group said it expected to pay a dividend of €2.40 per share for 2012.

The company was cautious about the outlook for this year. It said it was aiming for stable sales volumes, a stable operating profit before non-recurrent items and at current exchange rates, and positive cash flow.

The group stood by its outlook for 2015 of an operating profit of €2.9bn.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

michelin  |  profits
NEXT ON FIN24X

 

Lastest Articles

Here is how to check your credit score and manage it Read More...
Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes Read More...
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...