Michelin reports steep drop in 1st half profit as restructuring weighs on earnings

  • Updated: July 25, 2013 - 1:45 AM

PARIS — 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.

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