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 4 years ago

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

More Stories
Hunter explains the purpose and function of wheel alignment procedures and the importance of proper vehicle maintenance to vehicle owners in its latest educational video.
News Latest Hunter Consumer Video Explains Why Cars Need Wheel Alignments

Hunter Engineering Co. has released an educational video for vehicle owners that explains why cars need wheel alignments.

Point S will work to expand its network of dealers thanks to a distribution agreement with Nussbaum Distributing President Mike Nussbam, left. He's pictured with members of the Point S team, Jim Richards, national cooperative recruiting executive; Walter Lybeck, CEO; and Clint Young, director of sales and business development.
News Tire Factory Looks to Expand Point S Brand With Nussbaum Distributing in Memphis

Tire Factory Inc. and Point S USA are making a big move to expand their network of tire dealers into the eastern half of the country. The company is partnering with Nussbaum Distributing Inc. in Memphis, Tenn., to distribute tires to four states.  

News MORE Tire Data! Fitment Group Merges with Size It Up

Two of the largest providers of tire and wheel fitment data have merged. The Fitment Group and Size It Up will operate under the Fitment Group brand and will based out of the corporate office in Duluth, Minn.

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!