PARIS, July 25 (Reuters) - Europe's biggest tyre maker Michelin will likely post a fall in first-half profits next Tuesday as it takes a hit from a strong euro, sagging demand and restructuring charges, analysts say.
Eight analysts polled by Reuters forecast an average net profit down 28 percent at 182 million euros, while operating profit was seen falling seven percent to 531 million on sales down around five percent to 7.42 billion.
Michelin published its own poll of 14 analysts showing average net profit of 168 million, with an operating margin of 7.1 percent of sales at 7.355 billion euros compared to a margin of 7.3 percent in the year-ago period.
Analysts said the firm would be hit by a slide in vehicle markets in western Europe and the United States and by the impact of a strong euro and higher raw material prices -- although this would be limited by the fall in the U.S. dollar.
Michelin would also likely take restructuring charges of around 100 million euros for its Spanish unit, where it is cutting 1,300 workers by 2005, analysts said.
However a rise in prices for its tyres would help offset the other negative factors, avoiding a sharp fall in its operating margin -- a key measure of profitability.
Michelin has declined to give specific forecasts for 2003, citing uncertain economic conditions, but some analysts say it may have trouble matching last year's oeprating margin of 7.8 percent and meeting its aim to "keep improving performance" at all levels.
The company is due to publish its earnings on Tuesday July 29 before the market open.
In million euros:
average median max min 2002 H1 Sales 7,421 7,424 7,679 7,260 7,820 Operating income 531 520 597 500 569.6 Net income 182 185 230 151 254.2