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Michelin cuts 2013 goal as forex erodes sales

PARIS (Reuters) - French tyre maker Michelin (PAR:ML) said an emerging-market currency slide will hit earnings this year, cutting its full-year operating profit goal by 100 million euros (85 million pounds) after a drop in third-quarter revenue.

The Brazilian real and Argentine peso fell more sharply than anticipated, Michelin said in a statement on Monday, increasing the likely impact on profit to 250 million euros from the 150 million previously forecast.

"Michelin should experience a more deeply negative currency effect than was expected at the beginning of the year," the company said.

Michelin scrapped its pledge to achieve 2013 operating income close to the 2.423 billion euros recorded last year, excluding one-time gains and charges.

The company, based in the central French city of Clermont-Ferrand, is pushing a 2 billion euro expansion in emerging markets to offset the weaker economic outlook and saturated vehicle markets at home.

Chief Financial Officer Marc Henry also stopped short of reiterating the company's 2.9 billion euro profit goal for 2015 when pressed by analysts on Monday.

"Of course we projected our 2015 guidance objective within the currency environment we had in 2012," Henry said during a conference call.

"I'm not making any bet on currencies for the time being - it's way too early to say anything."

Revenue fell 5.8 percent to 5.12 billion euros in the three months to September 30, eroded by lower pricing as well as the lower value of foreign sales converted into euros from the weaker real, peso, U.S. dollar and Japanese yen.

The currency and pricing decline overcame a 2 percent volume sales increase driven by strong demand for car tyres in North America and truck tyres in Asia and South America.

($1 = 0.7254 euros)

(Reporting by Laurence Frost; Editing by James Regan and David Evans)