Michelin profits truck on despite tyre price war
France's Michelin, one of the world's top three tyre makers, said Tuesday net profit rose by double digits last year despite a raging price war impacting earnings.
Net profit increased by 12.8 percent to 1.16 billion euros ($1.29 billion) in 2015, while sales improved by 8.4 percent, thanks partly to favourable currency factors and acquisitions.
Overcapacity in Asia and falling commodities prices made for a "particularly competitive marketplace", Michelin said in a statement.
The firms's favourite measure of performance, operating income before exceptional items, was up 18.7 percent, translating into a profit margin of 12.2 percent, 1.1 point higher than in 2014.
Chief Executive Officer Jean-Dominique Senard told French radio that the results were "quite remarkable".
Michelin's core business, passenger car tyre sales, saw healthy sales growth at 14.6 percent, but truck tyre sales grew by just 2.4 percent.
For 2016, Michelin said it was aiming for sales in line with market growth and better underlying operating earnings.
© 2016 AFP