⁍ French tire maker Michelin said its operating profit fell 78.4% in the first half due to the impact of the coronavirus crisis on the automobile market.
⁍ Fearing that the health crisis of the first half will be followed by an economic crisis in the second half, the firm gave a cautious outlook.
⁍ It now expects its 2020 free cash flow will come in at more than 500 million euros, down from an initial objective of 1.5 billion euros.
– The world’s No. 1 tire maker says it expects its operating profit to fall by more than 70% this year as a result of the severe coronavirus that hit the automobile market in the first half of the year, Reuters reports. In a statement, the French company says it expects an operating profit of around $1.2 billion in 2020, well below the $3 billion it earned in 2019. The company says it expects the second half of the year to be hit by an economic crisis as well.
Source: https://www.reuters.com/article/us-michelin-results/michelin-cuts-earnings-targets-due-to-coronavirus-crisis-idUSKCN24S218