Shares fell 2.31 euros to 45.49 euros, furthering the stock’s decline this year to 42% and valuing the company at 6.6 billion euros.
According to a French financial newsletter, Michelin will announce cost-cutting measures at its July 30 earnings presentation, and jobs cuts will also possibly be tabled. Profits have been whittled away by weakening demand for cars in mature markets, which has made it harder to pass on raw material price increases to customers.
Some analysts, including London based Adam Jonas from Morgan Stanley, have cautioned that Michelin may find it difficult to implement recently announced price increases. (Tyres & Accessories/Staffordshire, U.K.)
