PARIS, Feb 25 (Reuters) - Europe's biggest tyre maker Michelin posted a forecast-beating 18 percent rise in 2002 operating profit on Tuesday as price increases and cost cuts help it resist a grim markets and a weak U.S. dollar.
The French firm said net profit rose 96 percent to 580.8 million euros compared to 296 million in 2001, or 614.5 million euros before minority interests versus 313.9 billion.
The sharp rise was driven by lower interest and tax charges than in 2001, and an exceptional capital gain from real estate sales in North America compared to an exceptional charge in 2001.
Operating profit for the full year totalled 1.225 billion euros compared to 1.04 billion in 2001, when the firm was hit by a 29 million euro charge largely due to restructuring costs in North America and Europe.
This was good for an operating margin of 7.8 percent, up from 6.6 percent in 2001 and above the firm's target of 7.0 to 7.4 percent.
A consensus of 18 analysts polled by the French firm predicted operating profit would rise almost nine percent to 1.13 billion euros, with net profit before minority interests up 46 percent to 458 million euros.
Michelin said it would not give firm forecasts for 2003 due to uncertain economic and geopolitical conditions, but said it aimed to keep improving its performance.
"We anticipate 2003 will be a year of uncertainties," said Chairman Edouard Michelin in a statement. "The 2002 results comfort us in our intention to further improve our performance in 2003."
Michelin, also famed for its upscale restaurant guides, said earlier this month full-year sales slipped 0.8 percent, slightly more than expected, as weak U.S. and Latin American currencies bit into revenues.
The firm said it had contributed 347 million euros to pension funds in 2002, and said social costs could be higher this year.