Michelin Forecasts Higher Costs

Tire maker Michelin & Cie. said it will face tougher competition and higher raw materials costs this year, Bloomberg reported Friday.

A Michelin spokeswoman made the comments at the company’s annual shareholder meeting Friday, Bloomberg said.

The France-based company reaffirmed its full-year outlook given in February, when the company forecast a “tangible increase” in profit-to-sales, from 8.2 percent last year, Bloomberg reported.
 
Michelin and tire makers Goodyear and Bridgestone/Firestone have raised prices as margins are squeezed by higher costs for natural rubber and for oil products, Bloomberg said.

Michelin is shedding jobs in Europe and North America as it moves toward a goal of a 30% productivity gain by 2010, Bloomberg reported.