LONDON (ShareCast) - Michelin has raised its profit estimates after reporting a sharp increase in 2011 profit due to higher prices and demand from European and US truckmakers.

Specifically, net income jumped 39% to €1.46bn and revenue rose 16% to €20.72bn.

Analysts had estimated sales of €20.65 bn and €1.32bn in profit.

After these earnings results the French company is targetting a 9% return on capital for 2015 and promises to pay out 30% of profit in the form of dividends. It now expects operating profit in 2015 to hit €2.5bn, compared to the original estimate of €2bn. Sales volumes are also projected to grow by 25% in 2015 and by another 50% in 2020.

Lastly, the company announced that Jean-Dominique Senard would officially take over as chief executive for Michel Rollier at the company’s May 11th shareholder meeting. Senard was chosen for the succession last year.

Michelin currently trades up 0.97% to €56.27.

JM

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