Michelin says materials costs are affecting truck unit

Clermont Ferrand, France - Speaking at the annual shareholders' meeting, Michelin gerant, Edouard Michelin said, "Weak markets and further raw material price increases weigh most on our truck operations and make it more difficult to fully offset such cost increases by integrating them into the price of truck tyre products.

M Michelin added that the company's "specialty tyre" operations, "enjoy strong dynamics, confirming the potential of these operations." M Michelin said the company will maintain its estimate of 8.8 percent operating margin for 2006, but added that the target is looking more challenging. "Margin for manoeuvre is increasingly small and the target hard to achieve, with a first half significantly below 2005 levels and a second-half that should benefit from a more

favourable basis for comparison and from the full effect of the price increases announced in

2006."

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Shareholders' page on Michelin website

Michelin Says Goal Harder to Reach on Material Costs Bloomberg (France)

Rise in costs may flatten profit goal for Michelin Shanghai Daily (Chna)