ML Michelin

   By Marc Navarro Gonzalez 
 

French tire maker Compagnie Generale des Etablissements Michelin (ML.FR) said Monday that its net profit rose slightly in 2017 and that it expects currency effects to hurt operating profit in 2018.

Michelin said net profit rose to 1.69 billion euros ($2.07 billion) in 2017, from EUR1.67 billion a year earlier. Revenue rose to EUR21.96 billion from EUR20.91 billion.

Analysts had expected Michelin to post 2017 net profit and revenue of EUR1.67 billion and EUR21.98 billion, respectively, according to a consensus forecast provided by FactSet.

The tire maker said the 5% revenue increase was partially driven by sustained market-share gains in its 18-inch and larger tires business.

The tire maker said currency effects would hurt 2018 operating income from recurring activities by around EUR300 million. However, the company said it expects to exceed this year's EUR2.74 billion figure at constant exchange rates.

Michelin said it will declare a proposed dividend of EUR3.55 per share.

The company also said it has acquired a 20% minority stake in Mobivia Groupe SA's German tire and auto-parts retailer ATU Auto-Teile Unger GmbH & Co for EUR60 million.

"Michelin is pursuing the acquisitions that will support its ambitions for growth and value creation," said Michelin's Chief Executive Jean-Dominique Senard.

Write to Marc Navarro Gonzalez at marc.navarrogonzalez@dowjones.com

(END) Dow Jones Newswires

February 12, 2018 12:53 ET (17:53 GMT)

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