Restructuring costs hit Michelin’s HI profits hard
PARIS (AP) — Tire maker Michelin SA says its first-half profits slumped 45 percent as restructuring costs weighed on earnings amid flat demand in key markets.
Michelin said Thursday it made a net profit of 507 million euros in the first half, down from 915 million euros a year earlier. Earnings were dented by a 250 million euro restructuring charge.
Michelin CEO Jean Dominique Senard said the performance was in-line with full-year goals. For example, operating profit before restructuring costs was stable.
Sales fell slightly to 10.2 billion euros, as demand in the second quarter picked up after a weak start to the year. Europe in particular saw an end to destocking by carmakers, pushing up demand 4 percent in the second quarter after an 11 percent slide in the first quarter.