French tyremaker Michelin unveiled a deeply discounted 1.2 billion euros ($1.6 billion) rights issue to fund growth in booming emerging markets and set new long-term sales and profit goals. Michelin said on Tuesday it was now targeting operating profit before non-recurring items clearly above 2 billion euros by 2015, a 25 percent increase in sales volumes by 2015, and a 50 percent rise in volumes by 2020.
Managing partner Michel Rollier confirmed 2010 targets set in July for positive free cash flow, an operating margin close to 9 percent, and an increase of more than 10 percent in sales volumes. Fellow managing partner Jean-Dominique Senard said sales would probably grow 10-12 percent this year.