Michelin posted a first-half profit and gave a full-year operating margin target that was higher than analysts estimated due to less pressure from raw-materials costs, the company said.
Net income was 504 million euros ($658 million), compared with a 122 million-euro loss a year earlier. Analysts had expected profit of 369.4 million euros. Sales rose 17% to 8.35 billion euros.
“The recovery in the tire market should continue,” Managing Partner Jean-Dominique Senard said, adding that Michelin plans to invest 1 billion euros this year as it expands in Brazil, India and China. “We’re pretty optimistic for the near future.”
