By Alberto Delclaux 
 

Compagnie Generale des Etablissements Michelin (ML.FR) on Thursday confirmed its 2018 guidance after reviewing raw-material costs, currency effects and markets.

The French tire maker said the change in raw-materials costs is expected to remain neutral on operating income in the second half, as higher oil prices are offset by more favorable natural rubber prices.

Michelin said the rise of the U.S. dollar against the euro is offseting the depreciation of currencies in emerging markets.

As for global markets, the company said that growth in Europe in the global replacement passenger-car and light-truck tire market is countering a slowdown in China. The original equipment tire market for these vehicles is, however, contracting due to weaker growth in China, it said.

Write to Alberto Delclaux at alberto.delclaux@dowjones.com

(END) Dow Jones Newswires

September 13, 2018 02:31 ET (06:31 GMT)