Michelin says sales slump in 3rd quarter
PARIS (AP) — Tire maker Michelin says its revenue slumped 5.8 percent in the third quarter and warned that the weakening U.S. and Canadian dollars would hurt full-year profits.
Michelin said in a statement Monday that its revenue for the July-September period fell to 5.12 billion euros ($7.06 billion), down from 5.44 billion euros a year earlier.
Michelin said profits were being squeezed by the worsening exchange rate, which hurts it because its costs are largely in euros and much of its sales are made in dollars.
Michelin said it aims now for an annual increase of around 150 million euros in operating profit, before accounting for the deeply negative currency effect as well as non-recurring items.
In 2012 Michelin made net profit of 1.57 billion euros on sales of 21.5 billion euros.