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Tire maker Michelin posts higher 2017 profits, warns of currency hit

Wednesday, Feb 14, 2018

French tire maker Michelin (MICP.PA) reported higher profits for 2017 while warning of a likely hit from foreign exchange movements.

Net income rose 1.6 percent last year to 1.693 billion euros (1.52 billion pounds), the company said on Monday. Analysts polled by Inquiry Financial for Reuters had given a median net income forecast of 1.67 billion euros.

Michelin said foreign exchange movements - based on January 2018 rates - would reduce its annual operating income from recurring activities by about 300 million euros.

The French company added it would raise prices to offset higher raw material costs.

Goodyear (GT.O) cut its 2020 forecast for combined earnings of its three units amid higher prices for raw materials, overshadowing better-than-expected quarterly profit and revenue.

Michelin said it would consider further acquisitions, and on Monday announced the purchase of a 20 percent stake in German automotive services provider ATU.

 

Source: reuters.com

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