Analysts Expect 41 per cent 1H EBIT Increase

Financial analysts have predicted that Michelin will give details of a 41 per cent EBIT increase (to 910 million) when it publishes details of its first half reslts on 27 July. According to the Deutsche Bank analysis, this corresponds to 10.8 per cent of sales. Net debt is expected to be up by approximately 100 million euros compared with December.

“We expect a net profit of 465 million euros. Our estimates are respectively 6 and 7 per cent above consensus,” the analysts commented, adding: “The second half should show a further improvement, however, we expect the positive pricing effect to be less significant in the second half. This is why after a 41 per cent EBIT increase in H1, we expect only +17 per cent in the second half.” Michelin management is expected to point out that the high rate of profits growth cannot be extrapolated out to a full-year result.