PARIS (Reuters) – French tyre maker Michelin raised its 2021 financial targets on Monday after a strong rebound in the tyre markets and gains in market share in the first half of the year despite global supply chain disruption owing to the COVID-19 pandemic.
Michelin said it now expects operating income to exceed 2.8 billion euros ($3.31 billion) this year at constant exchange rates, up from its previous forecast of more than 2.5 billion euros.
The company also expects free cash flow to reach more than 1 billion euros, up from about 1 billion euros.
It said that supply chain disruptions will still hit global tyre demand in the second half.
Michelin said sales rose by 19.6% in the first half to 11.19 billion euros while operating income edged up to 1.42 billion euros from 310 million euros a year earlier.
($1 = 0.8466 euros)
(Reporting by Gilles Guillaume; Writing by Matthieu Protard; Editing by David Goodman)