PARIS (Sept. 20, 2000)—Uncertain economic conditions prevailing in the second half of 2000 might mean a swing of $250 million or more in Group Michelin´s operating earnings this year, the company said in a forecast. For the first half of 2000, Michelin saw operating earnings fall 9.4 percent, to $532.5 million, because of the combined effects of rising raw material prices, the impact of fluctuating currency values contributed and inventory adjustments.
In particular, Michelin singled out the ``lower level of profitability´´ in the U.S. and Japan and raw material price increases of nearly 15 percent as contributing factors in the decline.
Sales for the period rose 13.7 percent to $7.28 billion; net earnings fell even more steeply, 27.7 percent, to $231.2 million.
For the full year, Michelin said its operating margin likely would lie between 7.3 and 9 percent, depending on the strength of the global economy.