Despite a severe economic downturn in most of France, Michelin, best known for its tyres, reported record profits, up 8.9% for the first half of 2005. Michelin has concentrated on its core products, consolidating its European bases and avoiding mass redundancies and relocations. By contrast, some state-financed industries are doing well by looking beyond Europe to high-growth areas in the Far East. The profits of France Telecom increased by 340%, Arcelor 124%, EADS 114%, Renault 52% and Total 44%.