PARIS, July 30 (Reuters) - French tyre maker Michelin said on Tuesday that net profit fell 31 percent in the first half of the year, due to an exceptional gain which boosted last year's bottom line, and raised its margin target for the full-year.
Europe's largest tyre manufacturer said net profit fell to 254.1 million euros in the six month period, while operating profit pushed up 16 percent to 569.6 million euros.
The figures were better than a consensus forecast for net profit of 216 million euros and operating profit of 546 million.
In a sign that conditions were improving Michelin, which has been plagued for much of the past year by a weak car market and high raw materials prices, said it was pushing up its margin target for 2002 to 7.0-7.4 percent.
Previously, the company had been targeting a margin of 6.7-7.4 percent.
Nevertheless, the company said market conditions in the second half of the year were still expected to be difficult and uncertain.
First half figures for 2001 were inflated by a capital gain on the sale of the firm's 2.8 percent holding in French carmaker PSA Peugeot-Citroen .
Stripping out that gain, net profit rose 279 percent to 254.1 million euros from 67 million.