Michelin maintains outlook as first half sales rise 23%

Europe's biggest tyre-maker, Michelin, on Tuesday confirmed its full-year outlook after a jump in earnings in the first half helped by lower raw material costs.
Net profit jumped 23 percent in the first half to 624 million euros ($837 million) boosted by lower raw material costs, the company said in a statement.
The French company reaffirmed its 2014 full-year guidance for a 3.0-percent rise in sales and a return on capital of more than 11.0 percent.
"In a competitive environment that persisted through the first half, Michelin met its objective of delivering a further improvement in its performance," said chief executive Jean-Dominique Senard in a statement.
Earnings were also helped by a 351 million-euro gain from cheaper rubber and other raw materials.
Investors cheered the news, sending Michelin shares up 3.2 percent in Paris to 85.52 euros, against an 0.84 percent gain in the broader markets.
But Michelin warned that currency movements and weaker emerging demand were dragging on its outlook.
Adverse currency movements, particularly in its newer markets, wiped 173 million euros from first-half earnings as it expanded in China, Brazil and India.
Emerging markets outside China were also "seeing a slowdown, especially in the original equipment segment," with demand in Russia down by more than a third due to the Ukraine crisis.
Net sales declined by 4.7 percent to 9.67 billion euros, dragged lower by pricing pressure and sales of lower-value tires. About 60 percent of sales were achieved outside Europe.
"At a time of uncertain raw materials prices, the Group strove to maintain a tight pricing policy while driving a slight increase in tonnages," the statement said.