Page last updated at 13:21 GMT, Friday, 12 February 2010

Michelin profits hit by falling sales

Michelin boss Michel Rollier
Michelin boss Michel Rollier says the company cannot give a profit forecast

French tyre manufacturer Michelin has reported a sharp slump in full-year profits for 2009 as sales fell during the global downturn.

Net profit was 106m euros ($144m; £92m), compared with 360m euros for 2008. Sales fell 9.8% to 14.8bn euros.

The company also warned about rising rubber prices and said it could not give a profit forecast for 2010 due to uncertainty in the tyre market.

Michelin shares fell almost 3% in Paris as a result.

Despite the disappointing full-year results, the company said that sales had picked up in the second half of 2009, largely on the back of car scrappage schemes introduced by governments across the world to boost demand for cars.

However, with the majority of these schemes now ended, tyre sales could now suffer, analysts said.

"The market visibility prevailing in early 2010 and the rising cost of raw materials are prompting us to exercise extreme vigilance," said Michelin's managing partner Michel Rollier.

"I such an uncertain environment and with the lack of visibility we have, it is not possible for us to predict a trend for operating results."



Print Sponsor


RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2013 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific