Oct. 23 (Bloomberg) -- Michelin & Cie rose the most in three weeks in Paris trading after third-quarter revenue at the world’s second-biggest tiremaker beat analyst estimates.
Michelin jumped as much as 4.6 percent to 64.70 euros, the biggest intraday increase since Oct. 1, and was trading up 3.5 percent at 10:02 a.m. The stock has gained 40 percent this year, valuing the company at 11.7 billion euros ($15.2 billion).
Third-quarter sales gained 5.7 percent to 5.44 billion euros because of higher demand for specialty tires, Clermont Ferrand, France-based Michelin said yesterday. The figure exceeded the 5.31 billion-euro average of seven analyst estimates compiled by Bloomberg.
The 123-year-old company, which makes more than half of revenue selling car and light-truck tires, is seeking to expand in the more profitable segment of tires for planes and mining equipment. Michelin also intends to increase sales outside Europe and North America.
The company plans to invest 1.6 billion euros to 2.2 billion euros a year through 2015 to fuel the expansion. About 60 percent of the spending will target new markets.
Michelin stuck to its 2012 forecast for a “clear” increase in operating income before non-recurring items. Full-year sales volume will decrease 5 percent, it said. The French manufacturer has said that it expects 2013 to be a “year of transition” for tire markets. For 2015, the company is targeting operating profit of about 2.9 billion euros.
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