PARIS (AP) — Tire maker Michelin SA says earnings slumped
sharply last year as restructuring and falling prices hurt
profitability.
Michelin said net profit fell 28 percent to 1.13 billion euros ($1.5 billion), down from 1.57 billion in
2012.
Earnings
were hit by around 260 million euros in restructuring costs as part of
the company’s bid to lift profitability by 2015. Last year profitability
slumped to 11 percent of sales, down from 11.3 percent in 2012. Falling
prices and volumes in the market for construction equipment and other
specialty tires was behind the drop.
Profits were also squeezed by the strong euro, as much of the company’s sales are made in dollars.
Sales fell 5.7 percent to 20.2 billion euros, Michelin said in a statement Tuesday.
Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.
PARIS (AP) — Tire maker Michelin SA says earnings slumped
sharply last year as restructuring and falling prices hurt
profitability.
Michelin said net profit fell 28 percent to 1.13 billion euros ($1.5 billion), down from 1.57 billion in
2012.
Earnings
were hit by around 260 million euros in restructuring costs as part of
the company’s bid to lift profitability by 2015. Last year profitability
slumped to 11 percent of sales, down from 11.3 percent in 2012. Falling
prices and volumes in the market for construction equipment and other
specialty tires was behind the drop.
Profits were also squeezed by the strong euro, as much of the company’s sales are made in dollars.
Sales fell 5.7 percent to 20.2 billion euros, Michelin said in a statement Tuesday.
Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.