Group Michelin reported an 8.9-percent jump in operating income for the six months ended June 30, on 8.5-percent higher sales.

The report prompted management to affirm previously disclosed growth projections for fiscal 2015.

Operating income before non-recurring items rose to $1.41 billion, or 12 percent of sales, as sales hit $11.7 billion on 2.4-percent great sales volume and a favorable currency effect. Offsetting the gains were a 4.3-percent drop in the price/mix component and a negative impact from raw materials-based contractual price adjustments.

Net income rose 13.3 percent to $705.4 million.

Michelin CEO Jean-Dominique Senard attributed the positive results to Michelin’s ability to leverage its “broader portfolio of solutions,” to expand access to customers and to take advantage of rising demand in its traditional markets.

As a result of the first-half results performance, Mr. Senard affirmed Michelin’s full-year outlook, which includes increased operating income, a return on capital employed of more than 11 percent and structural free cash flow of more than $780 million. Capital expenditures should total about $2 billion.

Mr. Senard pointed out that Michelin strengthened its position in the OE segment and launched products in new segments, like the CrossClimate and Premier All-Season and BFGoodrich KO2 and Comp-2 lines.

Source: tirebusiness.com