Michelin reported record annual operating profit on Monday, buoyed by the deferred impact of past price adjustments in 2022, but the tire maker remains cautious for the current fiscal year, citing an "uncertain" market environment.

The Clermont-Ferrand-based group posted operating income from its sectors of 3.57 billion euros in 2023, beating analysts' forecasts of 3.42 billion euros on average, according to a consensus compiled by Michelin.

"We are in a market context that remains complicated, a European situation that is not ultra-bright, a China that is starting up again but not with growth as strong as it was a few years ago, and plenty of other unknowns," said CFO Yves Chapot in an interview with Reuters.

Michelin's projection for the global car, truck, specialty machinery, two-wheeler and aircraft markets ranges from -2% to +2% in 2024, according to a presentation posted online by the Group.

"We have no reason to imagine that the market will rebound strongly, it will be more or less stable, let's hope we're wrong, but at this stage, this is what we anticipate," said Michelin CEO Florent Menegaux during a teleconference with analysts.

The logistical problems linked to the Red Sea, which forced the group to preemptively halt production at several plants in Europe in January, weighed on a total of 4% of Michelin's finished goods and raw materials flows, mainly natural rubber, continued Yves Chapot, for whom this crisis will have a "reasonably marginal" impact on 2024 results.

Michelin now expects operating income from its sectors to exceed €3.5 billion in 2024, while analysts were expecting an average of €3.59 billion. The Group will hold an investor day at the end of May to present new medium-term targets for 2026. (Written by Olivier Cherfan and Augustin Turpin in Gdansk, with Gilles Guillaume in Paris, edited by Kate Entringer and Tangi Salaün)