(Updates to add net profit result.)
By Olivia Bugault
Compagnie Generale des Etablissements Michelin's (ML.FR) after-tax and net profit both dropped in 2018, dragged down by a challenging economic environment and adverse currency effects, the French tire maker said Monday.
After-tax profit slipped to 1.66 billion euros ($1.87 billion) last year from EUR1.69 billion a year earlier, the company said. Net profit fell to EUR1.68 billion from EUR1.70 billion last year.
Revenue rose to EUR22.03 billion from EUR21.96 billion, it said.
The company said currency effects had a EUR271 million negative impact on its results.
Analysts had expected Michelin to post 2018 net profit of EUR1.72 billion on revenue of EUR21.75 billion, according to a consensus forecast provided by FactSet.
Michelin said it will declare a dividend of EUR3.70 a share, up from EUR3.55 last year.
The company expects its 2019 segment operating income--its key operating measure--to exceed last year's figure of EUR2.77 billion at constant exchange rates.
Michelin shares lost roughly one-fourth of their value to EUR90.76 in the last 12 months, in line with a similar decline in the STOXX Europe 600 Automobiles & Parts index as the whole sector is buffeted by trade wars, a slowdown in Chinese production and the emergence of new disruptive technologies.
Write to Olivia Bugault at email@example.com