French tire giant Michelin announced on the 26th of July that its first half of 2022 sales increased 18.7% year-on-year to 13.29 billion euros. The pricing strategy was successful.



Net profit fell from € 1.03 billion in the year-ago quarter to € 843 million ($ 852 million). The suspension of Russian business after Russia's invasion of Ukraine echoed. The company subsequently decided that production could not be resumed due to supply chain problems associated with the invasion and that the business would be transferred to a new company by local management by the end of the year. In this regard, € 202 million was impaired.


Eve Chapo, chief financial officer, told Reuters that inflation would have an impact on the performance of around € 2.4 billion this year, offset by higher product prices and increased sales of high-end tires. The effect of the price increase was 1.4 billion euros in the first half, and it was able to fully compensate for the rise in raw material prices and distribution costs.


The company has left its full-year operating profit outlook unchanged at over € 3.2 billion, excluding exchange rate fluctuations.