Michelin Earnings Plunge 45%

Michelin & Cie. netted €507 million in the first half of 2013 compared with €915 million a year earlier as €250 million in restructuring charges eroded profits in the latest period.

Revenue dropped 5% to €10.2 billion, and volume declined 2%. The company says demand began to improve in the April-June period.

First-half operating income excluding one-time items fell 13% to €1.2 billion. Operating margin slipped to 11.3% from 12.3% in the same period in 2012.

Michelin confirms its full-year outlook for stable operating profit and steady global volume. The company expects to offset first-half weakness with stronger demand and lower raw materials costs in the second half.