Michelin Revises Full Year Targets
Michelin’s financial results for the quarter ending September 30, 2008 show a slight increase in sales during the three month period. However, upon releasing its figures the company also warned that a drop in European and North American demand makes it unlikely that previously set targets will be reached. In July, the Michelin Group based its estimated result of around 8.6 per cent for the full year on the assumption that “second half markets do not worsen beyond estimated levels” forecasted at the time. It now reports the different trends recorded since early October point to a sharper deterioration of demand in most European and North American countries. If this trend is confirmed in November and December, Michelin should post 7 to 7.5 per cent operating margin before non-recurring items for fiscal 2008. The company’s 2007 operating margin stood at 9.8 per cent.