By Inti Landauro 
 

PARIS--Cie Generale des Etablissements Michelin SCA (ML.FR)'s first-half net profit rose to 624 million euros ($836 million) from 507 million euro a year ago, it said Tuesday.

The French tire maker attributed the increase to lower raw-material costs.

It also said it will meet its 2014 targets.

Net sales fell to 9.67 billion euro down from 10.16 billion euro. Price cuts on some tires and falling demand for its most expensive products were to blame, the company said.

Analysts had expected a net profit of 676 million euro and sales of 9.85 billion euro.

Operating profit before nonrecurring items rose to 1.16 billion euro from 1.15 billion euro.

Michelin reaffirmed its 2014 full-year guidance for a 3% rise in sales in line with the international market and a return on capital employed of more than 11% and cash flow of more than 500 million euro. It also expects a better operating profit excluding currency effects.

Write to Inti Landauro at inti.landauro@wsj.com

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