Retail

1H results: Michelin increases income by 23%

Posted on July 29, 2014

Groupe Michelin posted net income of 624 million euros on net sales of more than 9.6 billion euros for the first half ending June 30, 2014. That compares to income of 507 million euros on sales of more than 10.1 billion euros for the first half of 2013.

Based on the exchange rate on June 30, 2014, Michelin recorded net income of $851.8 million on net sales of $13.2 billion for the first half of fiscal 2014. Its income-to-sales ratio was 6.4%.

Michelin's operating income was 1.1 billion euros (nearly $1.6 billion), up less than 1% from the previous year.

Here is the first-half breakdown, in U.S. dollars, of Michelin's tire segments.

Tire segment     Net sales   Operating income

Consumer           $7 billion      $802.7 million

Truck                   $4 billion      $308.5 million

Specialty             $2.1 billion   $471 million

“In a competitive environment that persisted through the first half, Michelin met its objective of delivering a further improvement in its performance, with a nearly 200 million euro increase in operating income at constant scope of consolidation and exchange rates,” says Jean-Dominique Senard, chairman, CEO and general partner.

“A continuous flow of innovations praised by vehicle manufacturers and a responsible, ambitious industrial strategy enabled the Michelin brand to maintain its global positions in the forefront of mobility.”

Second-half prediction

Michelin says global demand for car and light truck and truck tires should remain supportive in the mature markets and China in the second half.

"On the other hand, the other new markets are seeing a slowdown, especially in the original equipment segment. At the same time, original equipment demand for earthmover tires should continue to significantly improve, while mining companies are expecting to continue drawing down inventory through the end of the year, although fourth-quarter growth will benefit from favorable prior-year comparatives."

Related Topics: Jean-Dominique Senard, Michelin financials, OTR tires

Comments ( 1 )
  • Lee

     | about 3 years ago

    Hard to believe based on their delivery rate, I waited over 8 months for a 14.00r24 last year.

More Stories
News

Judge Declares Overtime Ruling Is 'Unlawful' For Now

On May 18, 2016, the Department of Labor’s final rule updating the overtime regulations was published by President Barack Obama and Secretary of Labor Thomas Perez. The ruling automatically extended overtime pay protections to more than 4 million workers within the first year of implementation.

Tire Pros is urging communities to buy from local retailers on Small Business Saturday. This year's day dedicated to locally owned small businesses is Nov. 26.
News

Tire Pros Supports Small Business Saturday With General Tires Rebate

American Tire Distributors Inc.’s Tire Pros franchise is partnering with Independent We Stand to support Small Business Saturday on Nov. 26. To help drive traffic to member stores, Tire Pros is offering a consumer rebate on General brand passenger and light truck tires. 

News

New Jersey Assembly Helps Define Unsafe Used Tires

The New Jersey Assembly has left no doubt as to its view on unsafe used tires. By a vote of 72-0 on Nov. 21, it unanimously passed legislation to prohibit the sale of unsafe used tires that pose a risk to New Jersey motorists and the public.

News

New Date Set for China Tire Show

The organizers of the China International Tire Expo (CITEXPO) have set a new date for the 2017 event: August 21, 22, and 23.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!